The following accounts were taken from the trial balance of Cristy Company as ofDecember 31, 2008:Sales …………….. $90,000Interest Revenue …………. 5,000Equipment …………… 46,000Accumulated Depreciation—Equipment … 12,000Inventory ……………. 20,000Advertising Expense ……….. 2,000Selling Expense …………. 6,000Interest Expense ………….. 1,000Given the information below, make the necessary adjusting entries.(a) The equipment has an estimated useful life of nine years and a salvage value of $1,000. Depreciation is calculated using the straight-line method.(b) Of selling expense, $2,500 has been paid in advance.(c) Interest of $750 has accrued on notes receivable.(d) Of advertising expense, $620 was incorrectly debited to selling expense.View Solution:
The following accounts were taken from the trial balance of Cristy