Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Debit $ 100,000 40,000 4,800 8,000 96,000 Account Credit Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary $ 8,000 8,800 6,000 140,000 Dividends Retained Earnings Service Revenue 4,000 50,000 80,000 Salaries expense Rent expense Advertising expense Total 20,000 12,000 8,000 $ 292.800 $ 292.800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31.
Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Debit $ 100,000 40,000 4,800 8,000 96,000 Account Credit Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary $ 8,000 8,800 6,000 140,000 Dividends Retained Earnings Service Revenue 4,000 50,000 80,000 Salaries expense Rent expense Advertising expense Total 20,000 12,000 8,000 $ 292.800 $ 292.800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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