Question

Credits Debits 30,000 40,000 1,500 60,000 20,000 0 2,000 6,000 80,000 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 30,000 31,000 0 50,000 0 2,000 60,000 28,500 4,000 146,000 0 70,000 18,900 11,000 0 0 1,100 0 3,000 347,500 347,500

Answer 1

Incorrect accounts are as follows

Prepaid Insurance
Beg Bal	$         6,000
		$         4,500	5
End Bal	$         1,500
Accumulate Depreciation
		$       30,000	Beg Bal
		$       10,000	1
		$       40,000	End Bal
Insurance expense
Beg Bal	$                -
5	$         4,500
End Bal	$         4,500

Since for Deferred Sales Revenue, no adjustment is required, so no number should be entered.

In Adjusted trial balance
Prepaid Insurance = $1500
Insurance Expense = $4500

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