a. Wages of $11,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,680. c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $6,397 of supplies are purchased. A physical count of supplies at December 31 shows $690 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,900 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $900 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

a. Wages of $11,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,680. c. The Supplies account had a $390 debit balance at the beginning of the year. During the year, $6,397 of supplies are purchased. A physical count of supplies at December 31 shows $690 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,900 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $900 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

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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