Account Analysis - Whitworth.docx - Whitworth Account Analysis Practice ACG 3103 The adjusted trial balance for Westerberg Inc as of appears below All

Account Analysis - Whitworth.docx - Whitworth Account...

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Whitworth ACG 3103 Account Analysis Practice The adjusted trial balance for Westerberg, Inc. as of 12/31/14 appears below. All of the accounts have their standard or normal debit/credit balance. Please show your work! Account 12/31/14 Balance Accounts Payable 20,000 Accounts Receivable 50,000 Accumulated Depreciation – Equipment 40,000 Cash 20,000 Common Stock 55,000 Cost of Goods Sold 10,000 Dividends Declared 5,000 Dividends Payable 10,000 Equipment 400,000 Insurance Expense 12,000 Interest Expense 2,500 Interest Payable 2,000 Inventory 30,000 Notes Payable 60,000 Prepaid Insurance 16,000 Rent Expense 24,000 Retained Earnings 300,000 Salary Expense 100,000 Salary Payable 5,500 Sales Revenue 200,000 Supplies 25,000 Supplies Expense 10,000 Unearned Revenue 12,000 Question 1: The note payable was borrowed on March 1 st . It is the only interest-bearing liability that the company was involved with this year. What was the interest rate?
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Unformatted text preview: Question 2: How much cash did Westerberg collect from its’ customers, assuming Accounts Receivable on 12/31/13 was $30,000, and the company began the year with no unearned revenue? Question 3: How much cash did Westerberg pay to its employees, assuming the 12/31/13 balance in salary payable was $10,000? Question 4: Two years’ worth of prepaid insurance was purchased on May 1 st . Westerberg has maintained a policy with that insurer for several years, and it is the only insurance the company carries. What adjusting entry was made on 12/31/14 relating to the insurance? (Westerberg had paid cash on a monthly basis prior to May 1 st , and insurance premiums were constant throughout 2014). Question 5: What will be the retained earnings balance shown on Westerberg’s 12/31/14 Balance Sheet?...
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