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Chapter 3and 4 Assignment-Q

1. Record depreciation expense of $1,300 on equipment. 2. Record interest expense of $2,000 on the note payable. 3. Record prepaid insurance expense of $2,220. 4. Record salaries expense of $11,000 and salaries payable. 5. Record accounts receivable of $3,200 for services provided. 6. Record unearned revenue of $30,000 and defer the amount over 7 months. 7. Record supplies expense of $850 and adjust supplies balance.

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56 views2 pages

Chapter 3and 4 Assignment-Q

1. Record depreciation expense of $1,300 on equipment. 2. Record interest expense of $2,000 on the note payable. 3. Record prepaid insurance expense of $2,220. 4. Record salaries expense of $11,000 and salaries payable. 5. Record accounts receivable of $3,200 for services provided. 6. Record unearned revenue of $30,000 and defer the amount over 7 months. 7. Record supplies expense of $850 and adjust supplies balance.

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Chapter 3 Assignment (240)-Q

1. New Slang Pest Control has the following balances in selected accounts on December
31, 2020.
Accounts Receivable $0
Accumulated Depreciation – Equipment 0
Equipment 6,650
Interest Payable 0
Notes Payable 20,000
Prepaid Insurance 2,220
Salaries and Wages Payable 0
Supplies 2,940
Unearned Service Revenue 30,000
All of the accounts have normal balances. The information below has been gathered at
December 31, 2020.
1. Depreciation on the equipment for 2020 is $1,300.
2. New Slang Pest Control borrowed $20,000 by signing a 10%, one-year note on July 1,
2020.
3. New Slang Pest Control paid $2,220 for 12 months of insurance coverage on October 1,
2020.
4. New Slang Pest Control pays its employees total salaries of $11,000 every Monday for
the preceding 5-day week (Monday-Friday). On Monday, December 27, 2020,
employees were paid for the week ending December 24, 2020. All employees worked
the five days ending December 31, 2020.
5. New Slang Pest Control performed disinfecting services for a client in December 2020.
The client will be billed $3,200.
6. On December 1, 2020, New Slang Pest Control collected $30,000 for disinfecting
processes to be performed from December 1, 2020, through May 31, 2021.
7. A count of supplies on December 31, 2020, indicates that supplies of $850 are on hand.

Instructions
Prepare in journal form with explanations, the adjusting entries for the seven items listed for
New Slang Pest Control.
2. Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet
at September 30, 2016. Use the report form. You must compute the ending balance of Retained Earnings.

Anderson Service Company


Adjusted Trial Balance
September 30, 2016

Balance
Account Title Debit Credit
Accounts Payable $9,000
Accounts Receivable $2,800

Accumulated Depreciation, Equipment 1,500


Cash 14,500
Common Stock 10,000
Depreciation Expense - Equipment 600
Dividends 1,500
Equipment 40,000
Notes Payable (long-term) 20,000
Office Supplies 1,500
Prepaid Rent 4,800
Rent Expense 1,200
Retained Earnings, August 31, 2016 8,100
Salaries Expense 9,000
Service Revenue 27,500
Supplies Expense 500
Unearned Revenue 1,000
Utilities Expense 700
Total $77,100 $77,100

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