A Company Unadjusted Trial Balance December 31, 2020 Cash $ 27,300 Accounts receivable 4,500 Supplies 900 Prepaid Rent 7,800 Equipment 73,500 Accumulated depreciation: equipment $19,400 Accounts payable 5,700 Unearned revenue 3,800 Note payable 20,000 Common stock 35,000 Retained earnings. 1/1/20 6,400 Service revenue 32,600 Salary expense 8,400 Telephone expense 300 Utilities expense 200 _______ Total $122,900 $122,900 Prepare the adjusting entry for the following: (Answers without supporting calculations will receive 0 points.) Depreciation on equipment is calculated using the straight-line method. The equipment has a salvage value of $5,000 and a useful life of 10 years. Debit Credit
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A Company Unadjusted December 31, 2020 |
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Cash |
$ 27,300 |
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4,500 |
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Supplies |
900 |
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Prepaid Rent |
7,800 |
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Equipment |
73,500 |
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$19,400 |
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Accounts payable |
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5,700 |
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Unearned revenue |
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3,800 |
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Note payable |
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20,000 |
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Common stock |
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35,000 |
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6,400 |
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Service revenue |
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32,600 |
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Salary expense |
8,400 |
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Telephone expense |
300 |
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Utilities expense |
200 |
_______ |
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Total |
$122,900 |
$122,900 |
Prepare the
Depreciation on equipment is calculated using the straight-line method. The equipment has a salvage value of $5,000 and a useful life of 10 years.
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Debit |
Credit |
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