Question

Problem 3-02 Concord Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2020. CONCORD ADVERTISING TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Dr. Cr. Cash $12,000 Accounts Receivable 25,800 Supplies 9,520 Prepaid Insurance 4,690 Equipment 64,130 Accumulated Depreciation Equipment $26,050 Accounts Payable 24,692 Interest Payable Notes Payable 4,800 Unearned Service Revenue 7,460 Salaries and Wages Payable -0- Common Stock 9,730 Retained Earnings 3,670 Service Revenue 56,768 Salaries and Wages Expense 11,880 Insurance Expense Interest Expense 420 Depreciation Expense Supplies Expense -0- Adjusted Dr. Cr. $12,000 29,623 4,130 3,881 64,130 $30,550 24,692 144 4,800 6,066 1,317 9,730 3,670 61,985 13,197 809 564 4,500 5,390

Answer 1

Adjusting Entries
Event	Particulars			Debit	Credit
1)	Accounts Receivable			$ 3,823.00
	To Service Revenue				$ 3,823.00
	($ 29623 - $ 25800)
2)	Unearned Service Revenue			$ 1,394.00
	To Service Revenue				$ 1,394.00
	($ 7460 - $ 6066)
3)	Supplies Expense			$ 5,390.00
	To Supplies				$ 5,390.00
	($ 9520 - $ 4130)
4)	Depreciation Expense			$ 4,500.00
	To Accumulated Depreciation				$ 4,500.00
5)	Interest Expense			$    144.00
	To Interest Payable				$    144.00
6)	Insurance Expense			$    809.00
	To Prepaid Insurance				$    809.00
7)	Salaries and Wages Expense			$ 1,317.00
	To Salaries and Wages Payable				$ 1,317.00

	Income Statement
	Revenue:
	Service Revenue				$ 61,985.00
	Expenses:
	Salaries and Wages Expense			$ 13,197.00
	Supplies Expense			$   5,390.00
	Depreciation Expense			$   4,500.00
	Interest Expense			$      564.00
	Insurance Expense			$      809.00
	Rent Expense			$   4,730.00
	Total Expenses				$ 29,190.00
	Net Income				$ 32,795.00

	Statement of Retained Earnings
	Beginning Balance				$   3,670.00
Add:	Net Income				$ 32,795.00
	Ending Balance				$ 36,465.00

	Balance Sheet
			Assets
	Cash					$ 12,000.00
	Accounts Receivable					$ 29,623.00
	Supplies					$   4,130.00
	Prepaid Insurance					$   3,881.00
	Equipment				$ 64,130.00
Less:	Accumulated Depreciation				$ 30,550.00	$ 33,580.00
	Total Assets					$ 83,214.00
		Liabilities and Stockholder's Equity
	Liabilities
	Accounts Payable				$ 24,692.00
	Interest Payable				$      144.00
	Notes Payable				$   4,800.00
	Unearned Service Revenue				$   6,066.00
	Salaries and Wages Payable				$   1,317.00
	Total Liabilities					$ 37,019.00
	Stockholder's Equity
	Common Stock				$   9,730.00
	Retained Earnings				$ 36,465.00
	Total Stockholder's Equity					$ 46,195.00
	Total Liabilities and Stockholder's Equity					$ 83,214.00

1)
	Note Payable x r x 3/12			=	$ 144.00
	$ 4800 x r x 3/12			=	$ 144.00
	$ 4800 x r			=	$ 576.00
	r			=	12%