Question

Required information The following information applies to the questions displayed below North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31 Debit $11,8ee Credit Account Titles Cash 5,8ee 2,360 20,800 Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense Rent Expense Depreciation Expense Income Tax Exрепse $ 1,120 1,12e 24,600 1,900 49,120 24,8ee 12,300 e $77,860 $77,860 Totals Other data not yet recorded at December 31 a. Rent expired during the year, $1,180 b. Depreciation expense for the year, $1,120 c. Utilities used and unpaid, $8,800 d. Income tax expense, $370.

Answer 1

ANSWER: Transactions Liabilities Assets Prepaid Rent Accumulated Depreciation $ $ - 1180 -1120 Stockholders' Equity Rent Expense Depreciation Expense Utilities Expense Income tax Expense -1180 -1120 -8800 -370 Accounts Payable Income tax Payable $ $ $ $ $ 8800 370

Explanations: Transactions Credit Debit 1,180 $ Accounts titles and explanations Rent Expense Prepaid Rent (To record rent expired during the year) 1,180 $ 1,120 Depreciation Expense Accumulated Depreciation (To record depreciation Expenses) 1,120 S 8,800 Utilities Expense Accounts Payable (To record utilities unpaid) 8,800 370 Income tax Expense Income tax Payable (To record income tax expense) 370