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pg_0056 - a Two—thirds of one month's insurance coverage...

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Unformatted text preview: a. Two—thirds of one month's insurance coverage has expired. b. At the end of the month, $1,200 of office supplies are still available. (2. This month's depreciation on the buildings is 500. d. An employee earned $120 of unpaid and unrecorded salary as of month—end. e. The company earned $2,550 of storage fefi that are not yet billed at month—end. 5. Prepare the income statement and the statement of retained earnings for the month of July and the balance sheet as of July 31, m9. 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post—closing trial balance. M (3) Unadj, trial balance totals, 559,000 (4:1) Dr. Insurance Expense, 5157 (5) Net income, 55,063; Retained Earnings (ending), $4,163; Total assets, 552,283 (7) P—C trial balance totals, 552,733 Problem 3-53 Determining balance sheet classifications C4 1n the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank. A. Current assets E. Current liabilities B. Long-term investments F. Long-term liabilities C. Plant assets G. Equity D. Intangible assets _ l. Rent receivable _ I 2. Interest receivable _ 2. Salaries payable _ I3. Long-term investment in stock _ 3. Income taxes payable _ I4. Retained Earnings _ 4. Prepaid insurance _ I5. Machinery _ 5. Office supplies _ I6. Notes payable (due in 15 years) _ 6. Interest payable _ I1. Copyrights _ 7. Rent revenue _ I8. Current portion of long-term note _ 8. Notes receivable (due in 120 days) payable _ 9. Land (used in operations) _ I9. Accumulated depreciation—Trucks _ IO. Depreciation expense—Trucks — 20- Office equipment _ I I. Commissions earned Problem 3—SBA Recording prepaid expenses and unearned revenues 1’6 P1 Jazz Co. had the following transactions in the lasttwo months ofits fiscal year ended May 31. Apr. 1 Paid $2,600 cash to an accounting firm for future consulting services. 1 Paid $2,484 cash for 12 months of insurance through March 31 of the next year. 30 Received $4,600 cash for future services to be provided to a customer. May 1 Paid $2,700 cash for future newspaper advertising. 23 Received $7,450 cash for future services to be provided to a customer. 3] 0f the consulting services paid for on April 1, $1,700 worth has been received. 31 A portion of the insurance paid for on April 1 has expired. N0 adjustment was made in April to Prepaid Insurance. 31 Services worth $1,400 are not yet provided to the customer who paid on April 30. n1 1 r.- .' 4'2 ...
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