Question

Tra Please enter the following information, taken at month-end, in the trial balance by entering the letter on the left) and amount on the right of each adjustment in the "Adjustments' column, for the appropriate accounts. Then fill in the 'Adjusted Trial Balance column with the balances of each account Interest of 5430 has accrued on a bank loan and is unrecorded b. A building Holden Corp. owns is rented out for $1,000 each month. The current month's rent has not been received by month-end. c. Equipment purchased at the start of the month for $10.500 is estimated to have a useful We of five years. After this time, the equipment will be scrapped due to technological obsolescence. d. 54.400 of the television advertising paid for in advance has been used 6. The monthly depreciation on the building is $200 of the $5,300 Consulting fees Holden Corp. received in advance, 54,800 has not yet been earned g. Holden Corp. purchased furniture for $10.500 at the start of the month. The furniture cost $10,500 and is expected to be worthless at the end of its five year life h. $150 of the insurance policy purchased in advance has expired. Holden Corp Trial Balance December 31, 2014 Unadjusted Adjusted Trial Balance stments Balance Account Dr. Accounts payable Accumulated depreciation building Accumulated depreciation equipment Accumulated depreciation, furniture Advertising expense 2,100 Building 36,400 Cash 70.000 Consulting revenue earned 11,100 Depreciation expense, building Depreciation expense, equipment Depreciation expense, furniture Equipment Furniture 10,500 Insurance expense 6.600 Interest expense 8.200 Interest payable Prepaid advertising 7.900 Prepaid insurance 1.800 Rent eamed

Answer 1

SN Account Note Adjustments Dr. Cr. 1 2 Holden Corp Trial Balance December 31, 2014 Unadjusted Trial Balance Dr. Cr. 100.00 10,100.00 5,900.00 8,800.00 2,100.00 36,400.00 70,000.00 11,100.00 200.00 175.00 175.00 4,400.00 500.00 200.00 175.00 175.00 ent 1 Accounts payable 2 Accumulated depreciation, building 3 Accumulated depreciation, equipment 4 Accumulated depreciation, furniture 5 Advertising expense 6 Building 7 Cash 8 Consulting revenue earned 9 Depreciation expense, building 10 Depreciation expense, equipment 11 Depreciation expense, furniture 12 Equipment 13 Furniture 14 Insurance expense 15 Interest expense 16 Interest payable 17 Prepaid advertising 18 Prepaid insurance 19 Rent earned 20 Rent receivable 21 Retained earnings 22 Share capital 23 Short-term notes payable 24 Supplies 25 Unearned consulting revenue Total 10,500.00 10,500.00 6.600.00 8,200.00 Adjusted Trial Balance Dr. Cr. 100.00 10,300.00 6,075.00 8,975.00 6,500.00 36,400.00 70,000.00 11,600.00 200.00 175.00 175.00 10,500.00 10,500.00 6,750.00 8,630.00 430.00 3,500.00 1,650.00 11,200.00 1 1,000.00 300.00 89,300.00 13,000.00 100.00 4,800.00 1,56,080.00 1,56,080.00 150.00 430.00 78 41 7,900.00 1,800.00 430.00 4,400.00 150.00 1,000.00 | 10,200.00 1,000.00 300.00 89,300.00 13,000.00 100.00 5,300.00 1,54,100.00 500.00 7,030.00 1,54,100.00 7,030.00

Notes Adjustment Amount Depreciation on building 200 Depreciation on equipment (Cost-Salvage Value/Useful Life Depreciation on furniture (Cost-Salvage Value)/Useful Life 2100*1/12=175 (10500-0)/5= 2100 2100*1/12=175 (10500-0)/5= 2100 Prepaid advertising used 4400 Impact Increase in depreciation expense and increase in accumulated depreciation Increase in depreciation expense and increase in accumulated depreciation Increase in depreciation expense and increase in accumulated depreciation Decrease in prepaid advertising asset and increase in advertising expense Decrease in unearned consulting revenue liability and increase in consulting revenue earned Decrease in prepaid insurance asset and increase in insurance expense Increase in interest expense and increase in interest payable Increase in rent earned and increase rent receivable asset Consulting revenue not earned 5300-4800=500 6 Insurance policy advance expired 150 Interest accrued on bank loan 430 Rent earned but not received 1000