Selected amounts from Carla Vista Company's trial balance of 12/31/20 appear below: 1. Accounts Payable $127,900...

Selected amounts from Carla Vista Company's trial balance of 12/31/20 appear below:

1.	Accounts Payable	$127,900
2.	Accounts Receivable	149,000
3.	Accumulated Depreciation—Equipment	213,300
4.	Allowance for Doubtful Accounts	23,100
5.	Bonds Payable	481,800
6.	Cash	149,600
7.	Common Stock	50,100
8.	Equipment	873,000
9.	Prepaid Insurance	31,000
10.	Interest Expense	10,700
11.	Inventory	304,800
12.	Notes Payable (due 6/1/21)	185,700
13.	Prepaid Rent	252,000
14.	Retained Earnings	822,300
15.	Salaries and Wages Expense	334,300

(All of the above accounts have their standard or normal debit or credit balance.)

(a)

Prepare adjusting journal entries at year end, December 31, 2020, based on the following supplemental information. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

a.		The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.)
b.		Interest accrued on the bonds payable is $14,454 as of 12/31/20.
c.		Prepaid insurance at 12/31/20 is $20,500.
d.		The rent payment of $252,000 covered the six months from November 30, 2020 through May 31, 2021.
e.		Salaries and wages earned but unpaid at 12/31/20, $24,200.

No.	Account Titles and Explanation	Debit	Credit
a.

b.

c.

d.

e.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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