Question

The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020, is as follows: Credit Cash Debit $17,690 109,600 $3,380 61,300 Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Bond investment at amortized cost Land 4,692 48,000 30,000 150,100 11,890 32,400 5,400 16,600 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Goodwill Accounts payable Bonds payable (20-year, 7%) Common shares Retained earnings Sales revenue Rent revenue Rent expense Supplies expense Purchases 101,900 180,000 120,600 48,847 180,000 11,175 20,250 10,500 97,300 Purchase discounts 940 Salaries and wages expense Interest expense 53,100 12,600 $664,132 $664,132

Answer 1

No.	Particulars	Debit	Credit		Calculation
1	Prepaid Rent A/c Dr.	4050			( 1350 *3 )
	To Rent Expenses A/c		4050
2	Depreciation Building A/c Dr.				( 150100 - 31200)/20
	To Accumulated Depreciation Building A/c
3	Insurance Expenses A/c Dr.	2231			2676 *9/12 & 2016 *4/36
	To Prepaid Insurance A/c		2231
4	Rent Revenue A/c Dr.	3725			7450 /2
	To Advance Rent Revenue A/c		3725
5.a	Bad Debts A/c Dr.	2600
	To Account Receivable A/c		2600
5.b	Bad Debts A/c Dr.	900			( 109600 -2600 )*4% - 3380
	To Allowance for Doubtful Accounts A/c		900
6	Advance to Salesperson A/c Dr.	550
	To Salaries & Wages Expenses A/c		550
7	Interest Expenses A/c Dr.	2100			180 * 1000*7%*2/12
	To Interest Payable A/c		2100
8	Depreciation Equipment A/c Dr.	2700			32400/12
	To Accumulated Depreciation Equipment A/c		2700
9	Interest Receivable A/c Dr.	1600			40*1200*8%*5/12
	To Interest Revenue A/c		1600
10	Cost of Goods Sold A/c Dr.	69200			61300 + 97300 - 89400
	To Inventory A/c		69200