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Question 3

The unadjusted trial balance for Sunland Engineering at its year end, December 31, 2017, is as

follows:


SUNLAND ENGINEERING

Trial Balance

December 31, 2017

Debit

Credit

Cash

$8,400

Accounts receivable

5,850

Supplies

4,750

Prepaid insurance

7,560

Notes receivable

12,300Equipment

27,400Accumulated depreciation—equipment

$8,220

Accounts payable

4,600

H. Duguay, capital

39,440

H. Duguay, drawings

52,500

Service revenue

106,000

Salaries expense

39,500

$158,260

$158,260


Additional information:


1.

Revenue of $10,550 was earned but unrecorded and uncollected as at December 31, 2017.

2.

On June 1, the company purchased a one-year insurance policy.

3.

Depreciation on the equipment for 2017 is $2,740.

4.A count on December 31, 2017, showed $1,800 of supplies on hand.

5.The four-month, 4% note receivable was issued on October 1, 2017. Interest and principal are payable on the maturity date.

Make adjusting entries for the year ended December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)


Date

Account Titles and Explanation

Debit

Credit

Dec. 31







(To accrue revenue earned but not billed or collected)Dec. 31







(To record insurance expired)Dec. 31







(To record depreciation)Dec. 31







(To record supplies used)Dec. 31







(To record accrued interest)


Post the adjusting entries. (Post entries in the order of journal entries presented in the previous part.)


Accounts Receivable












Interest Receivable




Prepaid Insurance









Supplies








Accumulated Depreciation-Equipment












Service Revenue













Interest Revenue




Supplies Expense




Depreciation Expense





Insurance Expense






Make closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)


Date

Account Titles and Explanation

Debit

Credit

Dec. 31










(To close revenue accounts)Dec. 31
















(To close expense accounts)Dec. 31







(To close profit to capital)Dec. 31







(To close drawings account)

Top Answer

Adjusting entries 1.Accounts Receivable $10,550 Service Revenue $10,550 2.Insurance Expense $4,410 Prepaid Insurance $4,410... View the full answer

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