On December 31, 2019, Krug Company prepared adjusting entries that included the following items:
Depreciation expense: $36,000.
Accrued sales revenue: $34,000.
Accrued expenses: $18,000.
Used insurance: $8,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $6,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
If Krug Company reported total assets of $340,000 prior to the adjusting entries, how much are Krug's total assets after the adjusting entries?
|Total assets prior adjustments||$ 340,000|
|Less: Depreciation expense||$ (36,000)||Will increase accumulated depreciation and it will result to decrease in Fixed assets|
|Add: Accrued sales revenue||$ 34,000||Will increase accounts receivable|
|Less: Insurance||$ (8,000)||Will decrease prepaid insurance|
|Total assets after adjustments||$ 330,000|
Accrued expenses and rent revenue earned will make impact on total liabilities
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