view Problem red: Frepare ageies, December 31, 2003 for egch sf the follovtng Ye
ID: 2595968 • Letter: V
Question
view Problem red: Frepare ageies, December 31, 2003 for egch sf the follovtng Year and 1. Estimated depreciation on the equ,pment was$6 500 for the year. Acruedwesat1 23 1 were $2000 the end Alawyerreceived $1,500onNovember 1,fr reemont sservices remedSernceFes were credited for the amount received The Prepaid Insurance account has a balance of$800. has expired by December 31 Insurance account has a balance of $800: It is estizmated thart $350, of Ris tat 5· 6.. The Supplies account has a balanceofS1.3-Su pliesonhando nDecember31 7. On September 1, the company paid 6 month's rent in advance on a warehouse and debited Prepaid Rent for $6,000 8. At the end of December,$500 in services have been earned, but not recorded 9. The company uses the allowance method for recording bad debts. On December 31, the wance account has a $100 credit balance. The company estimates that 1% of its SSO,000 in will be uncollectible. 0. d V0o0120 have been made to date for accrued interest The general ledger shows a ss,000, 10%, one-yearroterecevable daar ST.Noea es- been made to date for accrued interest. 11. 35o (re 4,000Explanation / Answer
1 Dep Dr 6500 To Equipment 6500 2 Wages exp. 2000 To Accured Wages 2000 3 Utility bill exp. 350 To Utib=lity bill payble 350 4 Bank Dr 15000 . To Fee income 1000 To Unearned Fee income 500 5 Insurance exp. 350 To Prepaid insurance 350 6 Consumption Ac TO Supplies 700 7 Rent Dr 4000 prepaid rent Dr 2000 To Bank 6000 8 Debtors 500 To Services income 500 9 Bad debts 5000 To Allowances for bad debts 5000 10 Interest exp. 120 To Interest payble on note 120 ( 4000 x 12 % x 3/12) 11 Interest exp. 300 To Interest payble on note 300 ( 6000 x 10 % x 6/12)
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