ivable $ -0- $100 Prepaid Insurance 1,500 700 Interest Payable -0- 80 Salaries Payable -0- 450 Unearned Rent 500
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The following are account balances of Grameen Corporation:
|
Account Title |
Amount in Unadjusted |
Balance after Adjustment |
|
Interest Receivable |
$ -0- |
$100 |
|
Prepaid Insurance |
1,500 |
700 |
|
Interest Payable |
-0- |
80 |
|
Salaries Payable |
-0- |
450 |
|
Unearned Rent |
500 |
200 |
Required:
1. Enter the unadjusted balance for each account in the following
2. Ledger accounts: Interest Receivable, Prepaid Insurance, Interest Payable, Salaries Payable, Unearned Rent, Interest Earned, Rent Earned, Insurance Expense, Interest Expense, and Salaries Expense.
3. Do the adjusting entry that must have been recorded for each account from the following report.
4.
5. Identify revenue and expense amounts for the period.
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