With the following information, prepare an adjusted trial balanced. (list accoun
ID: 2486790 • Letter: W
Question
With the following information, prepare an adjusted trial balanced. (list accounts in proper order) A/R $2,896 - Unearned Rent $2,500 - Cash 10,253 - A/P $1,548 - Accumulated Depreciation $2,200 - Supplies $562 - Loan $15,000 - Interested Expense $200 - Prepaid Expenses $1,500 - Drawing $5,000 - Fees Earned $8,962 - Rent Expense $980 - Misc, Expenses $1,745 - Equipment 16,800 - Depreciation Expense $1,745 - Equipment 16,800 - Depreciation Expense $200 - Utility Expense $300 - Capital $10,226 Smith Company purchased a new truck: a. Identify the total cost of the truck: b. Calculate the monthly depreciation. The truck has a useful life of 8 years: Truck $23,500 Delivery $600 Payroll Expense $2.S60 Sales Tax $2,500 Advertising Expense $563 Find the missing amounts: With the statements below, prepare closing entries.Explanation / Answer
1)
2)
Cost of the truck = $23500 + $600 (delivery expense) = $24100
Depreciation per month = $24100 / (8*12) = $251
3)
4)
Account Debit($) Credit($) Cash 10253 A/R 2896 Supplies 562 Prepaid expense 1500 Equipment 16800 Accumulated depreciation 2200 A/P 1548 Unearned rent 2500 Loan 15000 Capital 10226 Drawings 5000 Fees Earned 8962 Rent expense 980 Utility expense 300 Depreciation 200 Misc. Expense 1745 Total 40236 40436