Question

In: Accounting

Shown below is the trial balance for Dunbar Corporation as at June 30, 2017, the company's...

Shown below is the trial balance for Dunbar Corporation as at June 30, 2017, the company's year end. The company owner provides you with the following additional information:

-No interest has been paid yet on the note payable. The note has been outstanding since April 1 and the interest rate is 12%

-The equipment originally cost $200,000 and has an estimated residual value of $10,000 and a useful life of 10 years.

- On June 1 the company renewed its insurance policy and paid a $1800 premium for the year. It was correctly recorded at that time as prepaid insurance.

-On October 1, 2016 the company sold a 12-month service contract to a client for $200,000 and recorded it as Unearned Revenue because at that point they had not yet provided any service to the client.

DUNBAR CORPORATION

TRIAL BALANCE

AS AT JUNE 30, 2017

DEBIT

CREDIT

Cash

8,900

Accounts receivable

28,000

Prepaid insurance

1,200

Equipment

100,000

Accumulated amortization

6,000

Accounts payable

12,000

Note payable

20,000

Unearned revenue

18,000

Common shares

10,000

Retained earning

6,700

Sales & service revenue

240,000

Salaries

120,000

Rent

24,000

Supplies expense

29,500

Amortization expense

0

Insurance expense

1,100

Interest expense

0

TOTAL

$312,700

$312,700

Required

Prepare any adjusting entired required.

Solutions

Expert Solution

Answer

  • Adjusting Entries, as asked

Adjustment #

Accounts title

Debit

Credit

#1

Interest Expense [20000 x 12% x 3/12]

$                 600.00

   Interest payable

$                600.00

(Interest accrued for 3 months : April to June)

#2

Amortisation [Depreciation] expense

$           19,000.00

   Accumulated Amortisation [(200000-10000)/10]

$          19,000.00

(Equipment depreciated)

#3

Insurance Expense

$                 150.00

   Prepaid Insurance

$                150.00

(Insurance expired for 1 month = 1 June to 30 june)

#4

Unearned Revenue [200000 x 9/12]

$         150,000.00

   Sales & Service revenue

$        150,000.00

(Unearned Revenue now earned for 9 months: 1 Oct to 30 June)


Related Solutions

The post-closing trial balance at 30 June 2017 of Payneham Professional Services is shown below. Transactions...
The post-closing trial balance at 30 June 2017 of Payneham Professional Services is shown below. Transactions completed during the year ended 30 June 2018 are summarised below: 1. Collections on accounts receivable totalled $98,470. 2. Consulting fees of $105,780 plus GST of 10% were receivable during the year. Clients are invoiced after services are provided and are given 30 days in which to pay. 3. Rent paid in advance was $17,500, plus GST. 4. Office supplies were purchased during the...
The trial balance of Winter Co. does not balance: WINTER CO. Trial Balance June 30, 2017...
The trial balance of Winter Co. does not balance: WINTER CO. Trial Balance June 30, 2017 Debit Credit Cash $2,833 Accounts receivable 1,990 Supplies 532 Equipment $7,875 Accounts payable 2,573 Unearned revenue 1,847 F. Winter, capital 11,221 F. Winter, drawings 801 Service revenue 3,475 Office expense 978 Salaries expense 2,977 $11,958 $25,144 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors: 1. Cash received from a customer on account was...
Eyelash Extension Company’s liabilities as reported on the June 30, 2017, balance sheet are shown below,...
Eyelash Extension Company’s liabilities as reported on the June 30, 2017, balance sheet are shown below, along with its statement of changes in equity.   Accounts payable $ 181,100   Notes payable, due 2019 497,000   Total liabilities $ 678,100 Eyelash Extension Company Statement of Changes in Equity For Year Ended June 30, 2017   Jan Suzette, capital, June 30, 2016 $ 498,000   Add: Profit 198,100      Total $ 696,100   Less: Withdrawals 286,700   Jan Suzette, capital, June 30, 2017 $ 409,400 Eyelash Extension Company’s liabilities...
The post-closing trial balance at 30 June 2020 of Payneham Professional Services is shown below. Transactions...
The post-closing trial balance at 30 June 2020 of Payneham Professional Services is shown below. Transactions completed during the year ended 30 June 2021 are summarised below: 1. Collections on accounts receivable totalled $85,340. 2. Consulting fees of $91,680 plus GST of 10% were receivable during the year. Clients are invoiced after services are provided and are given 30 days in which to pay. 3. Rent paid in advance was $15,240, plus GST. 4. Office supplies were purchased during the...
Windsor Corporation Trial Balance   June 30, 2017 Accounts Balance   Sales revenue 1,583,270 Sales discounts 31,410 Cost...
Windsor Corporation Trial Balance   June 30, 2017 Accounts Balance   Sales revenue 1,583,270 Sales discounts 31,410 Cost of goods sold 898,200 Salaries and wages expense (sales) 56,480 Sales commissions 98,010 Travel expense (salespersons) 34,800 Delivery expense 22,840 Entertainment expense 15,090 Telephone and Internet expense (sales) 9,070 Depreciation expense (sales equipment) 4,902 Maintenance and repairs expense (sales) 6,085 Miscellaneous selling expenses 4,920 Office supplies used 3,325 Telephone and Internet expense (administration) 2,748 Depreciation expense (office furniture and equipment) 6,832 Property tax expense...
Windsor Corporation Trial Balance   June 30, 2017 Accounts Balance   Sales revenue 1,583,270 Sales discounts 31,410 Cost...
Windsor Corporation Trial Balance   June 30, 2017 Accounts Balance   Sales revenue 1,583,270 Sales discounts 31,410 Cost of goods sold 898,200 Salaries and wages expense (sales) 56,480 Sales commissions 98,010 Travel expense (salespersons) 34,800 Delivery expense 22,840 Entertainment expense 15,090 Telephone and Internet expense (sales) 9,070 Depreciation expense (sales equipment) 4,902 Maintenance and repairs expense (sales) 6,085 Miscellaneous selling expenses 4,920 Office supplies used 3,325 Telephone and Internet expense (administration) 2,748 Depreciation expense (office furniture and equipment) 6,832 Property tax expense...
Windsor Corporation Trial Balance   June 30, 2017 Accounts Balance   Sales revenue 1,583,270 Sales discounts 31,410 Cost...
Windsor Corporation Trial Balance   June 30, 2017 Accounts Balance   Sales revenue 1,583,270 Sales discounts 31,410 Cost of goods sold 898,200 Salaries and wages expense (sales) 56,480 Sales commissions 98,010 Travel expense (salespersons) 34,800 Delivery expense 22,840 Entertainment expense 15,090 Telephone and Internet expense (sales) 9,070 Depreciation expense (sales equipment) 4,902 Maintenance and repairs expense (sales) 6,085 Miscellaneous selling expenses 4,920 Office supplies used 3,325 Telephone and Internet expense (administration) 2,748 Depreciation expense (office furniture and equipment) 6,832 Property tax expense...
The following account balances were included in the trial balance of Twain Corporation at June 30,...
The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Property tax expense 7,320 Cost of goods sold 896,770 Bad debt expense (selling) 4,850 Salaries and wages expense (sales) 56,260 Maintenance and repairs expense (administration) 9,130 Sales commissions 97,600 Office expense 6,000 Travel expense (salespersons) 28,930 Sales returns and allowances 62,300 Delivery expense 21,400 Dividends received 38,000 Entertainment expense 14,820...
The following account balances were included in the trial balance of Sarasota Corporation at June 30,...
The following account balances were included in the trial balance of Sarasota Corporation at June 30, 2020: Sales revenue $1,839,650 Telephone and Internet expense (office) $3,620 Cost of goods sold 1,061,770 Salaries and wages (office) 7,920 Salaries and wages expense (sales) 53,260 Supplies expense (sales) 5,050 Sales commission expense 99,000 Repairs and maintenance expense (office) 9,430 Advertising expense (sales) 29,130 Depreciation understatement due to error—2018 (net of tax of $3,300) 18,400 Freight out 21,700 Miscellaneous expense (office) 6,500 Entertainment expense...
The following account balances were included in the trial balance of Sarasota Corporation at June 30,...
The following account balances were included in the trial balance of Sarasota Corporation at June 30, 2017. Sales revenue $ 1,579,860 Depreciation expense (office furniture and equipment) $ 6,762 Sales discounts 31,690 Property tax expense 6,843 Cost of goods sold 897,100 Bad debt expense (selling) 4,503 Salaries and wages expense (sales) 56,690 Maintenance and repairs expense (administration) 8,281 Sales commissions 98,950 Office expense 5,980 Travel expense (salespersons) 31,900 Sales returns and allowances 63,694 Delivery expense 23,150 Dividends received 39,910 Entertainment...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT