39) Selected data from BabCo.’s accounting system are provided below. All account balances are
BEFORE
year-end adjustments and all data relate to the year ended December 31, 2011. Determine the amount that will be reported for each of the items in the table below, after the appropriate adjustments have been made using the information below. The table does
NOT
include all of the accounts that will be adjusted.
a.Interest accrues on a $30,000 note payable at the rate of 6.5% per year and the note has been unpaid all year.
b.Equipment with a cost of $100,000, a 10-year estimated useful life, and salvage value of $5,000 was owned and used all year.
c.$300 of the supplies were used during the year.
d.The prepaid rent balance relates to a month policy purchased on November 1, 2011.
e.$500 of the unearned revenue is now earned.
f.The salaries expense account balance does not include $5,000 of employee salaries earned but unpaid.
|
Item
|
Balance
BEFORE
adjustment
|
Balance
AFTER
adjustment
|
1
|
Interest expense
|
$0
|
$
|
2
|
Office supplies
|
$800
|
$
|
3
|
Prepaid rent
|
$1,200
|
$
|
4
|
Depreciation expense
|
$0
|
$
|
5
|
Unearned revenue
|
$2,000
|
$
|
6
|
Salaries expense
|
$143,000
|
$
|
40) Selected data from BR Co.’s accounting system are provided below. All balances are before year-end adjustments and all data relate to the year ended December 31, 2011. Determine the amount that will be reported for each of the items in the table below, after the appropriate adjustments have been made using the following information below. The table does
NOT
include all of the accounts that will be adjusted.
a.A note payable of $10,000 has been unpaid all year and bears interest at 8%.
b.Equipment with a cost of $20,000, a 5-year estimated useful life, and a $5,000 estimated residual value was owned and used all year.
c.$50 of the supplies are unused at the end of the period.
d.The Prepaid rent balance relates to a $1,500, month lease beginning on October 1, 2011.
e.$15,000 rent revenue has been earned but not yet collected from tenants.
f.Employees have earned an additional $25,000 in salaries, but have not yet been paid.
|
Item
|
Balance
before
adjustment
|
Balance
after
adjustment
|
1.
|
Interest payable
|
$0
|
$
|
2.
|
Office supplies
|
$300
|
$
|
3.
|
Prepaid rent
|
$1,500
|
$
|
4.
|
Depreciation expense
|
$0
|
$
|
5.
|
Rent revenue
|
$100,000
|
$
|
6.
|
Salaries payable
|
$10,000
|
$
|
41) Selected data from Babel Co.’s accounting system are provided below. All balances are before year-end adjustments and all data relate to the year ended December 31, 2011. Determine the amount that will be reported for each of the items in the table below, after the appropriate adjustments have been made using the following information:
a.The note has been unpaid all year and bears interest at 5 %.
b.The equipment, which was owned and used all year, has a 3-year estimated useful life with a $0 estimated residual value.
c.$500 of the supplies were used during the year.
d.The Prepaid insurance balance relates to a 6-month policy purchased on April 1, 2011.
e.$5,000 of the unearned revenue is now earned.
f.The Salaries expense account balance does not include $25,000 of employee salaries earned but unpaid.
|
Item
|
Balance
BEFORE
adjustment
|
Balance
after
adjustment
|
1
|
Notes payable
|
$50,000
|
$
|
2
|
Office supplies
|
$500
|
$
|
3
|
Prepaid insurance
|
$3,600
|
$
|
4
|
Equipment
|
$75,000
|
$
|
5
|
Unearned revenue
|
$20,000
|
$
|
6
|
Salaries expense
|
$37,000
|
$
|
7
|
Interest payable
|
$0
|
$
|