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table 3 2 the unadjusted trial balance of danvon collection services at december 31 4300859

Table 3-2

 

The unadjusted trial balance of Danvon Collection Services at December 31, 2014 follows. Danvon records payments for insurance, rent and supplies to the expense accounts; and, cash received in advance from customers as revenue.

 

DebitCredit

Cash$4,800

Accounts receivable10,400

Prepaid insurance

Prepaid rent

Office supplies

Equipment16,500

Accumulated amortization$2,400

Salaries payable

Interest payable

Unearned service revenue600

Note payable8,000

Ted Danvon, capital15,200

Ted Danvon, withdrawals3,000

Service revenue42,500

Salaries expense20,500

Amortization expense

Rent expense16,200

Insurance expense2,200

Office supplies expense600

Interest expense500______

$71,700$71,700

 

13) Refer to Table 3-2. Given the following information, prepare the necessary adjusting entries at year end, December 31, 2014, for Danvon Collection Services.

 

a) A count revealed that $100 of office supplies were still on hand at December 31, 2014.

b) The accountant has determined that the prepaid insurance balance at December 31, 2014, should be in the amount of $450.

c) The equipment is amortized at the rate of $200 per month.

d) The accountant has determined that the unearned service revenue balance at December 31, 2014 should be in the amount of $350.

e) Interest of $200 on the note payable has accrued to the end of the year.

f) Salaries accrued at December 31, 2014 amounted to $650.

g) The accountant has determined that the prepaid rent balance at December 31, 2014 should be in the amount of $100.

14) At the end of 2014, Sam Lim had catering supplies on hand in the amount of $9,000. During 2015, the business paid $89,000 for additional catering supplies. At year end, the company's catering supplies on hand totalled $5,000.

 

Required:

1) The 2015 year-end adjusting journal entry if Sam Lim records cash paid for supplies as an expense.

 

Date

Accounts

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2) The 2015 year-end adjusting journal entry if Sam Lim records cash paid for supplies as an asset.

 

Date

Accounts

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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