Question

ONLY RED COLORED QUESTIONS

Credit SANTO DESIGN ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Cash $11,350 Accounts Receivable 21,500 Supplies 5,000 Prepaid Insurance 2,500 Equipment 60,000 Accumulated Depreciation Equipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 11,300 Insurance Expense 850 Interest Expense 150 Depreciation Expense 7,000 Supplies Expenses 3,400 Rent Expense 4,000 $127,050 $35,000 5,000 150 5,000 5,600 1,300 10,000 3,500 61,500 $127,050

Answer 1

1.

Accounts Payable	5000
Interest payable	150
Notes payable	5000
Unearned revenue	5600
Salaries and wages payable	1300
Total Liabilities	17050
Common stock	10000
Retained earnings (3500+34800)	38300
Total Equity	48300
Total equity and liabilities	65350

2. Interest O/s = 150 (given)

Notes Payable = 5000 given.

So Interest Rate => (150/5000)/(6/12) * 100 = 6%

3.

Salaries and wages expense as per Trial balance	11300
Less: O/s relating to 2020	1300
So, actual Salaries and wages paid pertaining to 2020	10000

Now given that total cash outflows relating to salaries and wages during the year is $ 17500 out of which 10,000 is of 2020. Hence balance is O/s salaries and wages of 2019 ie., 17500-10,000 = 7500 $.