The following additional information is provided: Paid a $1,800 premium on 1/1/2

Question

The following additional information is provided: Paid a $1,800 premium on 1/1/2015 for a 3-year liability insurance policy. Rented out excess storage space for one year beginning December 1, 2015. Received annual rental payment of $6000 on that date. Borrowed $100,000 at 6% on November 1,2015. Interest and principal are due on 4/1/17. According to payroll records upaid wages at year end totaled $8,000. Tortoise's building has a 20-year estimated useful life. The fixtures and equipment have a 6-year estimated useful life. Tortoise purchased a six-month certificate of deposit (CD) on August 1, 2015. The interest rate on the CD was 3%. Received a $5,300 bill for December utilities on January 8, 2016. The tax rate was 40%.

Explanation / Answer

Please provide me complete information on additional information # 6. Is it the amount of investment of $ 8,000 appearing in the trial balance?

Adjusted trial balance as of December 31, 2015 :

Transaction Account Title Debit Credit $ $ 1. Insurance expense 600 Prepaid insurance 600 2. Unearned rent revenue 500 Rent revenue 500 3. Interest expense 1,000 Interest payable 1,000 4. Salaries expense 8,000 Salaries payable 8,000 5. Depreciation expense 40,000 Accumulated depreciation 40,000 6. What is the value of the CD? 7. Utilities expense 5,300 Utilities expense payable 5,300 8. Income tax expense 23,840 Income tax payable 23,840

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