Need help!! The following unadjusted trial balance was taken from the books of B
ID: 2585441 • Letter: N
Question
Need help!!
The following unadjusted trial balance was taken from the books of BRZ Inc. on December 31, 2017, its fiscal year end. (zero balance accounts not shown).
BRZ Inc.
Trial Balance
December 31, 2017
Debit
Credit
Cash
$12,000
Accounts receivable
56,800
Allowance for doubtful accounts
$2,460
Prepaid insurance
1,488
Furniture and fixtures
122,000
Accumulated depreciation – furniture and fixtures
12,200
Accounts payable
14,700
Bond payable (8%, 10 year)
14,000
Common shares
55,900
Retained earnings
56,900
Service revenue
203,928
Salaries and wages expense
132,000
Rent expense
23,000
Supplies expense
4,500
Advertising expense
8,300
Total
$360,088
$360,088
Additional information:
(a) On October 1, 2017, BRZ purchased a one-year insurance policy for $1,488.
(b) Furniture and fixtures are estimated to have a ten-year useful life with no residual value. They were purchased on January 1, 2016. The straight-line method is used to depreciate this asset group.
(c) The bond payable was issued January 1, 2014. Interest is payable on January 1st of each year.
(d) $5,600 worth of services had been performed for clients but not yet invoiced as of December 31, 2017.
(e) On December 31, BRZ paid the local newspaper for advertising for the first three months of 2018. The newspaper charges $300 per month for advertising. This transaction has not yet been recorded.
(f) Salaries earned by employees but not yet paid for the last week of December were $5,600.
(a) Prepare the adjusting entries BRZ should record on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
(d)
(e)
(f)
(b) Indicate which adjusting entries could be reversed.
(a)
(b)
(c)
(d)
(e)
(f)
Explanation / Answer
a & b) Journal Entries & whether the entry is reversable or not :
Serial no. Reversable or not Accounts Titles and explanations Debit $ Credit $ a Not Insurance Expense 372 Prepaid Insurance 372 [1488 * (3/12) ] b Not Depreciation - Furniture & Fixtures 12200 Acc. Depreciation - Furniture & Fixtures 12200 [122000 * (1/10) ] c Reversable Interest Expenses 1120 Interest Payable 1120 (14000 * 8%) d Reversable Unbilled Revenue 5600 Sales Revenue 5600 e Reversable Prepaid Advertisement 900 Cash 900 ($300 * 3 = $900) f Reversable Salaries and Wages Expenses 5600 Salaries and Wages payable 5600Related Questions
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