Financial Ch. 4 Practice problems with answers.pdf - Chapter 4 Whiteboard Problems Barts Towing Company is at the end of its accounting year The

Financial Ch. 4 Practice problems with answers.pdf -...

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Chapter 4 Whiteboard Problems: Bart’s Towing Company is at the end of its accounting year, December 31, 2016. The following information that must be considered has been developed from the company’s record and source documents. a. On January 1, 2016, the company purchased a new hauling van at a cash cost of $24,600. Depreciation estimated at $4,000 for the year has not been recorded for 2016. b. During 2016, office supplies amounting to $1,000 were purchased for cash and debited in full to Supplies. At the end of 2015, the count of supplies remaining on hand was $400. The inventory count at December 31, 2016 was $250. c. On July 1, 2016, a three year insurance premium on equipment in the amount of $1,200 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. d. On October 1, 2016, the company borrowed $11,000 from the local bank on a one-year, 14 percent note payable. The principal plus interest is payable at the end of the 12 months. e. Wages amounting to $39,000 for the last three days of December 2016 were not paid and
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