Question

Thanos Merchandising Company Unadjusted Trial Balance December 13, 2019
Account	Balance
Bank	187.200
Interest Payable	180.000
Bank Loan (5 years)	552.000
Notes Receivable	336.000
Service Revenue	1.080.000
Cost of Service	576.000
Office Supplies	21.600
Accumulated Depreciation(Building)	336.000
Equipment	264.000
Marketing Expense	????
Building	480.000
Depreciation Expense (Building)	72.000
Interest receivable	90.000
Note payable (3 years)	300.000
Cash	33.600
Profit from sale of equipment	7.200
Account Receivable	136.800
Capital	924.000
Utilities Expense	230.400
Accounts Payable	168.000
Bank Loan (1 year)	60.000
Rent Expense	126.000
Prepaid Rent	60.000
Interest Expense	57.600
Accumulated Depreciation(Equipment)	216.000
Service discount	30.000
Land	960.000
Depreciation Expense (Equipment)	192.000
Interest Revenue	60.000
Insurance Expense	42.000
Unearned Service Revenue	84.000

Thanos Merchandising Company was established on January 1, 2019. As of December 31, 2019, the following additional information is available:

1. $5.000 of Office Supplies has been used.

2. Accrued interest revenue is $10.000.

3. $15.000 of prepaid rent has expired as of December 31, 2019.

4. As of December 31, 2017, $20.000 of the Unearned Service Revenue is earned.

Required:

a. Find the Marketing Expense for the year of 2019 (Hint: Write all the accounts to debit or credit sides while considering their nature. The total of debit and credit sides should be equal.)

b. Prepare and journalize the adjusting entries.

c. Prepare the adjusted trial balance.

d. Journalize the closing entries.

e. Prepare Income Statement and Statement of Financial Position (Balance Sheet) of Thanos Service Company in proper form.

Answer 1