Jackson Consulting Unadjusted Trial Balance – December 31, 2018 Debits Credits C
ID: 2339521 • 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.
Determine Net Income after all adjusting entries have been recorded.
$19,025
$14,525
$16,725
$18,575
$17,625
A.$19,025
B.$14,525
C.$16,725
D.$18,575
E.$17,625
Explanation / Answer
Answer is A. $ 19025 Explanation: Net income (after adjustment) Service revenue (91350+2300) 93650 Less: Operating expenses Salaries expense (55000+950) 55950 Advertising expense (900/4) 225 Utilities expense 650 Depreciation expense (14000/10) 1400 Supplies expenses 400 Rent expenses (24000*8/12) 16000 Total Operating expense 74625 Net operating income 19025
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