Adjusting items: 1. The prepaid rent covers December 2016 & January 2017 rents.

Question

Adjusting items: 1. The prepaid rent covers December 2016 & January 2017 rents. 2. December depreciation on equipment is $12,000 per month. 3. At year end Wages of $10,300 were earned but unpaid.
Bravo prepares monthly adjusting entries. Use this information to determine the adjusted account balance for the following: 1. Cash 2. Prepaid rent 3. Equipment 4. Accumulated depreciation 5. Wages Payable 6. Rent expense 7. Wages expense 8. Depreciation Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 331,860 6,255 11,000 295,285 Accounts Receivable Supplies Prepaid Rent Equipment

Explanation / Answer

Adjusting entries: 1 Rent expense Account Dr. 5500      Prepaid rent 5500 2 Depreciation expense Dr. 12,000      Accumualted Depreciation 12,000 3 Wages Expense Account Dr. 10,300         Wages payable 10300 Aadjusted balance is as follows: 1 Cash: $88450 (Dr) 2 Prepaid rent: $ 5,500 (Dr) 3 Equipment : $ 295,285 (Dr) 4 Accumulated Depreciation: $ 236,260 (Cr) 5 wages payable: $ 10,300 (Cr) 6 Rent expense : $ 66,000 (Dr) 7 Wages expense: $ 537560 (Dr) 8 Depreciation expense: $ 156,000 (Dr)

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