Module 7 - Adjusting Entries Solutions

Module 7 - Adjusting Entries Solutions - ACT 6692 Advanced...

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CPA Review Module 7 Prepare Adjusting Entries Setup The following trial balance was taken from the books of ABC Corporation on December 31, 2008. Account Debit Credit Cash $ 12,000 Accounts Receivable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $ 1,800 Merchandise Inventory 44,000 Prepaid Insurance 4,800 Furniture and Equipment 125,000 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 55,000 Sales 280,000 Cost of Goods Sold 111,000 Salaries Expense 50,000 Rent Expense 12,800 Totals $406,600 $406,600 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,000. b. Estimated bad debts, 1% of gross sales. c. Depreciation on furniture and equipment, 10% per year. d. Interest at 6% is receivable on the note for one full year. e. Rent paid in advance at December 31, $5,400 (originally charged to expense). f.
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This note was uploaded on 04/29/2010 for the course ACCT ACT 6692 taught by Professor Hudack during the Fall '09 term at Troy Montgomery.

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Module 7 - Adjusting Entries Solutions - ACT 6692 Advanced...

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