In Part A , you will be utilizing given data regarding four different balance sh

Question

In Part A, you will be utilizing given data regarding four different balance sheet accounts to determine the requested information. I suggest setting up each question by considering the beginning and ending balances in the balance sheet account, and then adjusting for what would cause the account to increase and decrease. Remember that adjusting entries impact one balance sheet and one income statement account. In addition, adjusting entries never involve cash.

Please see the attached image for the additional information and "Required" section..?.

Explanation / Answer

1. Cost of supplies purchased during 2017 = 3300 - 2500 =$800

2. Money lent = (800/ 0.10 ) x 12 /2 = $48000

3. Amount of salaries expense = Opening outstanding + Paid during the year - Closing outstanding

= 8000 + 112000 - 6500

= $113500

4. Subscription revenue recognized = Unearned in the beginning + Received during the year - Unearned in the end

= 45000 + 178200 - 56300

= $166900

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