Question

The trial balance for Cozy Fireplaces Inc. for December 31, 2020, follows: Credit balances Cash Debit balances $ 89,700 38,300 95,200 5,100 46,600 79,600 150,000 $19,500 21,600 Accounts receivable Inventory Supplies Prepaid rent Land Building Accumulated depreciation, building Accounts payable Wages payable Interest payable Income tax payable Unearned revenue Bank loan payable Common shares Retained earnings Sales revenue Cost of goods sold Wages expense Rent expense Supplies expense Depreciation expense Interest expense Miscellaneous expenses Income tax expense Dividends declared Totals 12,400 40,000 151,000 17,600 836,000 477,900 95,900 13,800 6,000 $1,098,100 $1,098,100

Need this to be solved asap thanks.

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Unearned Revenue	$9,300
	Sales Revenue		$9,300
	($12,400 x 3/4)
2	Wages Expense	$2,000
	Wages Payable		$2,000
3	Rent Expense	$42,600
	Prepaid Rent		$42,600
	($3,100 x 6 + $4,000 x 6)
4	Supplies Expense	$4,700
	Supplies		$4,700
	($5,100 - $400)
5	Depreciation Expense	$6,500
	Accumulated Depreciation, Building		$6,500
	($150,000 - $20,000)/20 years
6	Interest Expense	$2,700
	Interest Payable		$2,700
	($40,000 x 9% x 9/12)
7	Income Tax Expense	$59,760
	Income Tax Payable		$59,760
Net Income = $199,200
($836,000 - $477,900 - $95,900 - $13,800 + $9,300 - $2,000 - $42,600 - $4,700 - $6,500 - $2,700)