Kimmel, Survey of Accounting, le CALCULATOR PRINTER VERSION 4BACK RCES Sunkan Co
ID: 2332724 • Letter: K
Question
Kimmel, Survey of Accounting, le CALCULATOR PRINTER VERSION 4BACK RCES Sunkan Company prepares monthly financial statements. Below are listed some selected accounts and their balances on the September 30 trial balance before any adjustments have been made for the month of September + Stockholders Equity Supplies + Prepaid Ins. +Equipment Accum. Depr. Equip Unearned Rent Rev. +Revenue Expenses -Liabilities Bal. 2,700 4,800 16,200 1,000 1,200 Note: Debit column does not equal credit column because this is a partial listing of selected account balances.) An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealed $1,000 on hand on September 30. 2. A two-year life insurance policy was purchased on September 1 for $4,800. 3. Office equipment depreciates $3,000 per year. 4. The amount of rent received in advance that remains unearned at September 30 is $300. Using the information given, above and the tabular summary, prepare the adjustments that should be made by Sunkan Company on September 30. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) Assets Liabilities Stockholders' Equity Expenses Supplies Prepaid Ins. +Equipment-Accum. Depr. Equip Unearned Rent Rev. +Revenue Bal. (A1) (A2) (A3) (A4) 2,700 4,800 16,200 1,000 1,200 Supplies exp. Ins. Exp. 12 1250 Depr. Exp. Rent. rev LIST OF ACCOUNTS Question Attempts: 2 of 3 used SAVE FOR LATERExplanation / Answer
The analysis is given below With that you can fill up the table:
Dr Amount Cr Amount A1 Supples Expenses $1,700 Increase in Expense-Thus debited Out of 2700 only supplies of 1000 left thus To Supplies $1,700 Decrease in Asset -Thus credited consumption of 1700 A2 Insurance Expense $200 Increase in Expense-Thus Debited Out of insurance of 24 months -1 months To Prepaid Insurance $200 Decrease in Asset-Thus Credited expired till 30 sep =4800/24*1 200 A3 Depreciation Expense $250 Increase in Expense-Thus Debited Depreciation for Sep -1 month =3000/12 To Accumulated Depreciation-Equipment $250 Decrease in Asset Thus Credited 250 A4 Unearned Rent Revenue $900 Decrease in Liability-Thus Debited Out of 1200 only remains uneraned is 300 To Rent Revenue $900 Increase in Revenue-Thus Credited thus earning is 900Related Questions
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