Question

U we Trial Balance 12.50 21.000 Salaries Eye Rent Expense Interest Expense 23 and The ting entry would include: on December 31, 2011 there were of applies credit to Supplies Expense of $180 debit to Supplies of 5720 credit te Supplies of S770 debit to Supplies Expense of 5180. None of the above stimated shape value of $3,000. The Company uses straight The Equipment was purchased on September 1, 2010. has a weale of eight year and line depreciation. The susting by December 31, 2011 would include credit te Accumulated Depreciation Equipment for 59.250. debit te Depreciation Ex q uipe for $1,500 credit to Equipes for 53,000 debit to Depreciation Expense-Equipment for $3,000 25. Refer to the previous question. The adjusted balance in Accumulated Depreciation Equipment at December 31, 2011 (feadusting for 2011) is $ 3.000 $ 3.750 poor of the show On April , 2011. Fay paid the landlord 99,600 for one year's rent in advance The adjusting entry at December 31, 2011 would include debit to Rent Pavable for $7.200 dshisto Ras Eve for $2.00 debit to Prepaid Rent for $2,400 credit to Prepaid Rent for $3,200. Done of the above 27. On August 1, 2011, Fay received 56,000 in advance for fees to be med evenly over menthe beginning on the date. The required djusting jumal entry at December 31, 2011 would include debit to Cash debit to Fee Revenue credit to Uneamed Fee Revenue debit to Unearned Fee Revenue none of the above Refer to the previous question. The amount of the stungurnary at December 31, 2011 would be $ 6,000 $ 3.000 $ 3,750 none of the above

Answer 1

The answer has been presented in the supporting shèet. For detailed answer refer to the supporting shèet.

Answer 2 Part23) 3 The correct answer is 4 C) credit to supplies of $ 770 6 Explanation 7 Since only 180 supplies are in hand rest has been used so supplies account will be credit by $ 770 (950-180) 9 Part 24) 10 The correct answer is 11 A)credit to accumulated depreciation account equipment for 2250 12 13 Explanation Depreciation expense = (21000-30000/8 14 = $ 2250 16 Hence accumulated depreciation account will be credited. 11 18 Part 25) 19 The correct answer is $3750 21 Balance as on December 2011 = beginning balance + during the year depreciation 22 = 750+3000 23 = $ 3750

Part 26) The correct answer is C) debit to prepaid rent for $ 2400 Explanation Prepaid rent = total rent * unexpired period / total perios = 9600 * 3/12 = $ 2400 Part 27) The correct answer is D) debit to unearned fee revenue Explanation Unearned service revenue will be debited as income has been earned for 5 months out off 8 Part 28) D) $ 3750 Explanation Revenue earned = 6000*5/8 = $ 3750