A company reported the following accounts in its unadjusted trialbalance at December 31, 2020:Dividends...

A company reported the following accounts in its unadjusted trial
balance at December 31, 2020:

Dividends ...................  $ 14,000
Income Tax Expense ..........  $ 25,000
Salaries Expense ............  $ 31,000
Rental Revenue ..............  $ 33,000
Cash ........................  $ 36,000
Supplies ....................  $ 37,000
Cost of Goods Sold ..........  $ 52,000
Unearned Revenue ............  $ 54,000
Accounts Receivable .........  $ 57,000
Land ........................  $ 69,000
Accounts Payable ............  $ 76,000
Trademark ...................  $ 88,000
Inventory ...................  $ 91,000
Retained Earnings ...........  $ 95,000 (at January 1, 2020)Sales Revenue ...............  $119,000
Common Stock ................  $123,000

The Company needs to record adjusting entries at December 31, 2020
related to the following three items:

1)  A utility bill totaling $16,000 was received in late December.
    The Company expects to pay the bill in January, 2021.

2)  A physical count revealed that supplies costing $15,000 were
    still on hand as of December 31, 2020.

3)  The unearned revenue relates to a $54,000 payment received on
    July 1, 2020. The payment was from a customer who paid the company for
    services to be provided each month for 18 months, beginning on
    July 1, 2020.

Calculate Company's total liabilities at December 31, 2020 afterthe appropriate adjusting entries have been recorded and posted.

Expert Solution


1	utility expense	$16000
	utility payable		$16000

2	supplies expense	22000
	supplies [37000-15000]		22000

3	unearned revenue [54000/18months]*6months from July to December	18000
	sales revenue		18000

adjusted unearned revenue =54000-18000=36000$

Total liabilities= utilities payable+account payable+unearned revenue

=16000+76000+18000

=$110,000

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