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Equipment $160,000 Unearned Revenues $50,000 Inventory $ 95,000 Accounts Payable

ID: 2378060 • Letter: E

Question

Equipment

$160,000

Unearned Revenues

$50,000

Inventory

$ 95,000

Accounts Payable

$60,000

Accounts Receivable

$ 20,000

Accumulated Depreciation - Equipment

($30,000)

Building

$100,000

Accumulated Depreciation - Bldg

($50,000)

Cash

$ 150,000

Note Payable

$140,000

Supplies

$ 12,000

Capital Stock

$150,000

Prepaid Rent

$ 15,000

Retained Earnings, beg. bal.

$172,000

Land

$100,000




1) The company provided the services associated with Unearned Revenues balance at the beginning of the year. Record the adjustment necessary for the year 2005.


2)At December 31, received $15,000 in cash representing advance payment for services to be provided in February of 2006. Record the adjustment necessary at December 31, 2005.


3) At December 31, the company had earned $35,000 in tax consulting revenue, but had not yet received payment from their customer. Record the adjustment necessary at December 31, 2005.

Equipment

$160,000

Unearned Revenues

$50,000

Inventory

$ 95,000

Accounts Payable

$60,000

Accounts Receivable

$ 20,000

Accumulated Depreciation - Equipment

($30,000)

Building

$100,000

Accumulated Depreciation - Bldg

($50,000)

Cash

$ 150,000

Note Payable

$140,000

Supplies

$ 12,000

Capital Stock

$150,000

Prepaid Rent

$ 15,000

Retained Earnings, beg. bal.

$172,000

Land

$100,000

Explanation / Answer

.