On January 1, 2021 $48,000 was paid to cover 3 years of insurance. What is the amount and what accounts
On January 1, 2021 $48,000 was paid to cover 3 years of insurance. What is the amount and what accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- On January 1, 2021 $48,000 was paid to cover 3 years of insurance. What is the amount and what accounts
![UNADJUSTED TB
ADJUSTMENTS
ADJUSTED TB
INCOME STATEMENT
BALANCE SHEET
December 31, 2021
December 31, 2021
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$
67,000
67,000
Short-term investments
62,000
62,000
Accounts receivable, net
68,000
68,000
Allowance for doubtful accounts
$
1,000
1,000
Supplies
56,000
56,000
Inventory
62,000
62,000
Prepaid insurance
48,000
48,000
Land
450,000
450,000
Equipment
210,000
210,000
Accumulated depreciation
75,000
75,000
Trademark
38,000
38,000
Accounts payable
39,000
39,000
Wages payable
Interest payable
Income tax payable
18,000
18,000
8,250
8,250
Unearned revenue
27,000
27,000
Long-term notes payable - due 03.01.23
60,000
60,000
Common stock, 50,000 shares issued and
outstanding
100,000
100,000
Retained earnings
220,000
220,000
Dividends
40,000
40,000
Sales revenue, net
1,592,964
1,592,964
Sales discount
1,368
1,368
Sales return and allowances
2,596
2,596
Interest revenue
Page 1
Cost of goods sold
683,100
683,100
Wages expense
240,000
240,000
Insurance expense
Bad debt expense
Supplies expense
113,150
113,150
Depreciation expense
Interest expense
44
3,600
Income tax expense
TOTALS
2 141 214
2 141 214
2 144 814
2 141 214](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F727e4093-8ead-4bf8-b086-0722c8766cbb%2F2cfcc915-4e1b-4e09-9702-2619eff328d4%2Fo1ykg7c_processed.png&w=3840&q=75)
Transcribed Image Text:UNADJUSTED TB
ADJUSTMENTS
ADJUSTED TB
INCOME STATEMENT
BALANCE SHEET
December 31, 2021
December 31, 2021
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$
67,000
67,000
Short-term investments
62,000
62,000
Accounts receivable, net
68,000
68,000
Allowance for doubtful accounts
$
1,000
1,000
Supplies
56,000
56,000
Inventory
62,000
62,000
Prepaid insurance
48,000
48,000
Land
450,000
450,000
Equipment
210,000
210,000
Accumulated depreciation
75,000
75,000
Trademark
38,000
38,000
Accounts payable
39,000
39,000
Wages payable
Interest payable
Income tax payable
18,000
18,000
8,250
8,250
Unearned revenue
27,000
27,000
Long-term notes payable - due 03.01.23
60,000
60,000
Common stock, 50,000 shares issued and
outstanding
100,000
100,000
Retained earnings
220,000
220,000
Dividends
40,000
40,000
Sales revenue, net
1,592,964
1,592,964
Sales discount
1,368
1,368
Sales return and allowances
2,596
2,596
Interest revenue
Page 1
Cost of goods sold
683,100
683,100
Wages expense
240,000
240,000
Insurance expense
Bad debt expense
Supplies expense
113,150
113,150
Depreciation expense
Interest expense
44
3,600
Income tax expense
TOTALS
2 141 214
2 141 214
2 144 814
2 141 214
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