Jackson Consulting Unadjusted Trial Balance – December 31, 2018 Debits Credits C
ID: 2339515 • Letter: J
Question
Jackson Consulting
Unadjusted Trial Balance – December 31, 2018
Debits Credits
Cash $ 11,500
Accounts Receivable 3,500
Supplies 1,200
Prepaid Rent 24,000
Equipment 14,000
Accumulated Depreciation $1,400
Accounts Payable 1,900
Unearned Service Revenue 2,800
Common Stock 10,300
Retained Earnings 7,500
Dividends 4,500
Service Revenue 91,350
Salaries Expense 55,000
Advertising Expense 900
Utilities Expense 650
Total: Debits =$115,250 Credits total = $115,250
Additional Information:
1.) The equipment was purchased on January 1, 2017. The useful life is estimated to be 10 years.
2.) As of December 31, 2018, the company had accrued salaries of $950.
3.) Of the balance in the unearned revenue account, $500 had not been earned by year -end.
4.) On December 1, 2018, the company paid $900 for four months of advertising.
5.) A count of supplies on December 31, 2018 showed $400 of supplies had been used during the year.
6.) On May 1, 2018, the company rented an office building for one year and paid $24,000 in cash.
The adjusting journal entry to record (a) above would include:
a credit to Depreciation Expense of $1,400
a credit to Accumulated Depreciation of $2,800
a debit to Accumulated Depreciation of $2,800
a debit to Depreciation Expense of $2,800
a credit to Accumulated Depreciation of $1,400
A.a credit to Depreciation Expense of $1,400
B.a credit to Accumulated Depreciation of $2,800
C.a debit to Accumulated Depreciation of $2,800
D.a debit to Depreciation Expense of $2,800
E.a credit to Accumulated Depreciation of $1,400
Explanation / Answer
The answer is E
because the closing entry will be
Depreciation Exp Acc Dr 14000*.1= 1400
Accumulated Depreciation Acc Cr 1400
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