Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit C
ID: 2569402 • Letter: B
Question
Bravo Unlimited
Unadjusted Trial Balance
December 31, 2016
Account Title
Debit
Credit
Cash $88,450
Accounts Receivable 331,860
Supplies 6,255
Prepaid Rent 11,000
Equipment 295,285
Accumulated Depreciation $224,260
Accounts Payable 72,555
Wages Payable 0
Capital Stock 220,000
Retained Earnings 111,145
Service Revenue 893,105
Interest Income 1,500
Rent Expense 60,500
Wages Expense 527,260
Supplies Expense 42,520
Utilities Expense 8,595
Depreciation Expense 144,000
Interest Expense 6,840
________
Totals
$1,522,565
$1,522,565
Adjusting Items:
2. The prepaid rent covers December 2016 and January 2017 rents.
3. December depreciation on equipment is $12,000 per month.
4. At year end Wages of $10,300 were earned but unpaid.
use this info to determine unadjusted account balances for the following: cash, prepaid rent, equipment, accumulated depreciation, wages payable, rent expense, depreciation expense
Explanation / Answer
Adjusted account balances calculation:
No adjusting entries for cash, cash balance= 88450
Prepaid rent 11000 cosists of rent for Dec16 and Jan17, so expense for Dec= 11000*1/2= 5500
Hence add rent expense 5500, adjusted rent expense balance= 60500+5500= 66000
Reduce prepaid rent by 5500, adjsted prepaid rent balance= 11000-5500= 5500
Depreciation on equipment= 12000, increased depreciation expense to= 144000+12000= 156000
Increased accummulated depreciation to= 224260+12000= 236260
Wages earned unpaid of 10300 increases wage expense to= 527260+10300= 537560
and wages payable balance to = 0+10300= 10300
Equipment balance will not change, hence balance= 295285