Question

SEC, Inc. Trial Balance before Adjustments December 31, 2012 Debit Credits Cash $12,600 Accounts Receivable 13,400...

SEC, Inc.

Trial Balance before Adjustments

December 31, 2012

Debit Credits
Cash $12,600
Accounts Receivable 13,400
Supplies 2,400
Equipment 38,500
Accumulated Depreciation $7,700
Accounts Payable 8,500
Unearned Service Revenue 9,900
Common Stock 18,000
Retained Earnings 11,500
Dividends 600
Service Revenue 35,000
Rent Expense 1,500
Salaries Expense 19,200
Utilities Expense 2,400
Total $90,600 $90,600

Additional Information

1. The equipment was purchased on January 1, 2011. The useful life is estimated to be 5 years, with no salvage value,

2. A count of supplies on December 31, 2012 showed $600 of supplies still on hand.

3. On December 31, 2012, wages that had been earned by employees, but not yet paid amounted to $800. The net scheduled pay date is January 4, 2013.

4. During December, SEC performed $3,300 worth of services, for which it had been paid in September.

5. On November 1, 2012, SEC paid for 5 months of rent with cash.

A) What are the correct adjusting entries?

B) Determine Net Income (after adjustments) for the year ending December 31, 2012.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) Adjusting entries

No Date General Journal Debit Credit
1 Dec 31 Depreciation expense (38500/5) 7700
Accumulated depreciation-equipment 7700
2 Dec 31 Supplies expense (2400-6000 1800
Supplies 1800
3 Dec 31 Wages expense 800
Wages payable 800
4 Dec 31 Unearned service revenue 3300
Service revenue 3300
5 Dec 31 prepaid rent (1500/5*3) 900
Rent expense 900

Calculate net income

Service revenue (35000+3300) 38300
Rent expense 600
Salaries expense 20000
Depreciation expense 7700
Utilities expense 2400
Supplies expense 1800
Net income 5800
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The December 31, 2012, trial balance of a company included the following: Debits Credits Accounts Receivable...
The December 31, 2012, trial balance of a company included the following: Debits Credits Accounts Receivable $176,000 Unearned Service Fees $24,000 Prepaid Rent 64,000 Prepaid Insurance 33,600 Equipment 240,000 Accumulated Depreciation-Equipment 30,000 Salaries Expense 120,000 Additional data: 1.      The equipment has an estimated life of 11 years and expected salvage value of $20,000 at the end of its life. 2.      Delivery services performed but unbilled at year-end amount to $6,400. 3.      Two-thirds of the Unearned Service Fees has been earned...
SUNDIAL Inc. Trial balance December 31 debit credit Cash ................................................. .............................. $ 16 Accounts Receivable ...................................................
SUNDIAL Inc. Trial balance December 31 debit credit Cash ................................................. .............................. $ 16 Accounts Receivable ................................................ ............................... 26 Equipment ................................................. .............................. 191 Accounts Payable ................................................ ............................... $ 21 Capital Stock ................................................ ............................... 106 Retained Earnings ................................................ ............................... 56 Dividends ................................................. .............................. 11th Service Revenue ................................................ ............................... 189 Salaries Expense ................................................ ............................... 86 Depreciation ................................................. .............................. 26 Supplies Expense ................................................ ...............................    16 ____ $ 372 $ 372 Which accounts will appear on the balance sheet? Please choose one: a. None...
Post-Closing Trial Balance December 31, 2018 Debit Credit Cash      18,200 Accounts receivable        3,960 Supplies        1,380
Post-Closing Trial Balance December 31, 2018 Debit Credit Cash      18,200 Accounts receivable        3,960 Supplies        1,380 Prepaid insurance           750 Prepaid rent        3,800 Furniture        5,000 Accumulated depreciation, furniture           450 Equipment        8,000 Accumulated depreciation, equipment        4,000 Accounts payable        2,700 Accrued liabilities           190 Unearned service revenue        1,900 Common shares      20,000 Retained earnings      11,850 Total      41,090      41,090 PREPARE JOURNAL ENTRIES (+ADJUSTING ONES IF NEEDED) Business Activities for January, 2019 On January 4, 2019, Linda paid the outstanding accounts payable balance from December 31, 2018. On...
Jackson Consulting Unadjusted Trial Balance – December 31, 2018                                &nbs
Jackson Consulting Unadjusted Trial Balance – December 31, 2018                                                                                                           Debits                                          Credits Cash                                                                                               $ 11,500     Accounts Receivable                                                                        3,500 Supplies                                                                                           1,200 Prepaid Rent                                                                                  24,000 Equipment                                                                                   14,000 Accumulated Depreciation                                                                                                                $1,400 Accounts Payable                                                                                                                             1,900     Unearned Service Revenue                                                                                                             2,800 Common Stock                                                                                                                             10,300 Retained Earnings                                                                                                                            7,500 Dividends                                                                                       4,500 Service Revenue                                                                                                                              91,350 Salaries Expense                                                                        55,000 Advertising Expense                                                                         900       Utilities Expense                                                                               650                                                                     Total: Debits =$115,250 Credits total = $115,250 Additional Information: 1.) The equipment was purchased on January 1, 2017. The useful life is estimated to be 10 years. 2.) As of December 31, 2018,...
Jackson Consulting Unadjusted Trial Balance – December 31, 2018                                &nbs
Jackson Consulting Unadjusted Trial Balance – December 31, 2018                                                                                                           Debits                                          Credits Cash                                                                                               $ 11,500     Accounts Receivable                                                                        3,500 Supplies                                                                                           1,200 Prepaid Rent                                                                                  24,000 Equipment                                                                                   14,000 Accumulated Depreciation                                                                                                                $1,400 Accounts Payable                                                                                                                             1,900     Unearned Service Revenue                                                                                                             2,800 Common Stock                                                                                                                             10,300 Retained Earnings                                                                                                                            7,500 Dividends                                                                                       4,500 Service Revenue                                                                                                                              91,350 Salaries Expense                                                                        55,000 Advertising Expense                                                                         900       Utilities Expense                                                                               650                                                                     Total: Debits =$115,250 Credits total = $115,250 Additional Information: 1.) The equipment was purchased on January 1, 2017. The useful life is estimated to be 10 years. 2.) As of December 31, 2018,...
The December 31, 2019 adjusted trial balance for Camptown Company is shown below. Debit Credit Cash...
The December 31, 2019 adjusted trial balance for Camptown Company is shown below. Debit Credit Cash $12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable $4,200 Salary payable 1,000 Notes payable 800 Capital 13,800 Drawing 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expense 22,500 Supplies expense 500 Total $115,800 $115,800 Using the information above prepare an income statement in single-step format and the closing...
The December 31, 2019 adjusted trial balance for Camptown Company is shown below. Debit Credit Cash...
The December 31, 2019 adjusted trial balance for Camptown Company is shown below. Debit Credit Cash $12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable $4,200 Salary payable 1,000 Notes payable 800 Capital 13,800 Drawing 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expense 22,500 Supplies expense 500 Total $115,800 $115,800 Using the information above prepare an income statement in single-step format and the closing...
Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $85,150 Accounts Receivable 229,140 Supplies...
Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $85,150 Accounts Receivable 229,140 Supplies 16,955 Equipment 395,285 Accumulated Depreciation $221,260 Accounts Payable 74,235 Capital Stock 220,000 Retained Earnings 101,145 Service Revenue 893,105 Interest Income 1,500 Dividends 2,000 Rent Expense 58,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 145,840 ________      Totals $1,522,565 $1,522,565 Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form...
Use the following to answer the next six questions MADONNA, INC. Unadjusted Trial Balance December 31,...
Use the following to answer the next six questions MADONNA, INC. Unadjusted Trial Balance December 31, 2012 DR CR Cash $ 51,000    Equipment 38,000    Retained Earnings $ 4,000 Accounts Payable 6,000 Unearned Fee Revenue 8,000 Accumulated Depreciation-Equipment 1,800 Accounts Receivable 1,500    Supplies 950    Salaries Expense 6,700    Common StockInsurance Expense 500 61,050 Fee RevenueRent Expense 4,200 30,000 Notes Receivable 8,000    $ 110,850 $ 110,850 1. On July 1, 2012, Madonna paid the landlord $4,200 for...
Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts...
Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts have normal balances. Accounts Receivable $ 7,500 Accounts Payable 650 Cash 3,700 Service Revenue 14,500 Common Stock, $2 par, 10,000 authorized 2,000 Common Stock, add’l pd in capital 7,000 Equipment, at cost 12,900 Accumulated depreciation 2,300 Depreciation Expense 700 Land 5,800 Notes Payable, Due 2021 8,000 Investment Securities 1,200 Prepaid Rent 1,400 Rent Expense 2,400 Retained Earnings, January 1, 2018 5,850 Salaries and Wages...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT