a. Depreciation for the current year includes equipment, $2,100. b. Each Monday, Betterton pays employees for the previous week's work. The amount of weekly payroll is $1,400 for a seven-day workweek (Monday to Sunday). This year, December 31 falls on Thursday. c. The beginning balance of Office Supplies was $2,300. During the year, Betterton purchased office supplies for $3,000, and at December 31 the office supplies on hand totaled $1,000. d. Betterton prepaid a two full years' insurance on July 1 of the current year, $6,000. Record insurance expense for the year ended December 31. e. Betterton had earned $2,800 of unearned revenue. f. Betterton had incurred (but not recorded) $200 of interest expense on a note payable. The interest will not be pa until February 28. g. Betterton billed customers $3,000 for welding services performed.

a. Depreciation for the current year includes equipment, $2,100. b. Each Monday, Betterton pays employees for the previous week's work. The amount of weekly payroll is $1,400 for a seven-day workweek (Monday to Sunday). This year, December 31 falls on Thursday. c. The beginning balance of Office Supplies was $2,300. During the year, Betterton purchased office supplies for $3,000, and at December 31 the office supplies on hand totaled $1,000. d. Betterton prepaid a two full years' insurance on July 1 of the current year, $6,000. Record insurance expense for the year ended December 31. e. Betterton had earned $2,800 of unearned revenue. f. Betterton had incurred (but not recorded) $200 of interest expense on a note payable. The interest will not be pa until February 28. g. Betterton billed customers $3,000 for welding services performed.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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