Question 1 (18 points) The following is the Bravo Unlimited unadjusted Trail Bal

Question

Question 1 (18 points)

The following is the Bravo Unlimited unadjusted Trail Balance.

Bravo Unlimited Unadjusted Trial Balance

December 31, 2016

Account Title

DEBIT

Cash $88,450

Accounts Receivable 331,860

Supplies 6,255

Prepaid Rent 11,000

Equipment 295,285

CREDIT

Accumulated Depreciation $224,260

Accounts Payable 72,555

Wages Payable 0

Capital Stock 220,000

Retained Earnings 111,145

Service Revenue 893,105

Interest Income 1,500

DEBIT

Rent Expense 60,500

Wages Expense 527,260

Supplies Expense 42,520

Utilities Expense 8,595

Depreciation Expense 144,000

Interest Expense 6,840 _______

Totals

DEBIT $1,522,565

CREDIT $1,522,565

Adjusting Items:

1. The prepaid rent covers December 2016 & January 2017 rents. The adjusting entry for December is needed.

2. December depreciation on equipment is $12,000 per month and is not yet recorded but needs to be recorded.

After the adjusting entries, what would be the adjusted account balances for the following:

1. Prepaid Rent

2. Accumulated Depreciation

Explanation / Answer

Calculate balance :

1. Prepaid rent = 11000-5500 = 5500

2. Accumlated depreciation = 224260+12000 = 236260

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.