Quiz Chapter 22 - (1) Accrued interest on investments...

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Quiz Chapter 22 Name: ____________________________________ A partial trial balance of Hughey Co. is as follows on December 31, 2010.   Dr. Cr. Supplies on hand $ 133,500 Accured salaries and wages $ 85,000 Interest receivable 48,000 Prepaid insurance 270,000 Unearned rent 0 Instructions: (a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2010? (1) A physical count of supplies on hand on December 31, 2010, totaled $120,500. (2) Accrued salaries and wages on December 31, 2010, amounted to $110,000. (b)   Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2010 (use 1, 2 and 3 below).
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Unformatted text preview: (1) Accrued interest on investments amounts to $42,000 on December 31, 2010. (2) The unexpired portions of the insurance policies totaled $230,000 as of December 31, 2010. (3) $78,000 was received on January 1, 2010 for the rent of a building for both 2010 and 2011. The entire amount was credited to rental income. Solutions: (a) (1) Supplies expense 13,000 Supplies on hand 13,000 (2) Salaries and wages expense 25,000 Accured salaries and wages 25,000 (b) (1) Retained earnings 6,000 Interest receivable 6,000 (2) Retained earnings 40,000 Prepaid insurance 40,000 (3) Retained earnings 39,000 Unearned rent 39,000...
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This note was uploaded on 03/27/2012 for the course ACCT 3312 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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