Rent expenseAdjusting and Closing Entries4,230Insurance expense1,212Silver Lining, Inc., provides investment advisory services. The company adjustsits accounts monthly, but performs closing entries annually on December 31.The firm's unadjusted trial balance dated December 31, current year, appears asSalaries expense32,520Interest expense432Income taxes expense8,280follows.Totals$ 179,112 $ 179,112SILVER LINING, INC.UNADJUSTED TRIAL BALANCEDECEMBER 31, CURRENT YEARDebit CreditOther DataCash$51,4021. Accrued but unrecorded and uncollected consulting services revenue totals$1,800 at December 31, current year.Accounts receivable2,400Office supplies2462. The company determined that $3,000 of previously unearned consultingservices revenue had been earned at December 31, current year.3. Office supplies on hand at December 31 total $132.4. The company purchased all of its equipment when it first began business.At that time, the estimated useful life of the equipment was six years (72months).5. The company prepaid its six-month rent agreement on October 1, currentPrepaid rent1,440Unexpired insurance324Office equipment64,800Accumulated depreciation: office equipment $42,300Accounts payable1.680Interest payable432Income taxes payable2,100Notes payable10,800year.Unearned consulting services revenue4,2006. The company prepaid its 12-month insurance policy on March 1, currentCapital stock36,000year.7. Accrued but unpaid salaries total $2,280 at December 31, current year.8. On June 1, current year, the company borrowed $10,800 by signing a 9-month, 8 percent note payable. The entire amount, plus interest, is due onMarch 1, next year.Retained earnings9,600Dividends1,200Consulting services revenue72,000Office supplies expense726Depreciation expense: office equipment9,900 Consulting services revenue72,0008. On June 1, current year, the company borrowed $10,800 by signing a 9-month, 8 percent note payable. The entire amount, plus interest, is due onMarch 1, next year.Office supplies expense726Depreciation expense: office equipment9,900Rent expense9. The company's CPA estimates that income taxes expense for the entireyear is $9,000. The unpaid portion of this amount is due early in the next4,230Insurance expense1,212Salaries expense32,520year.Interest expense432InstructionsIncome taxes expense8.280Totals$ 179,112 $ 179,1121. Prepare the necessary year-end closing entries.2. Prepare an after-closing trial balance.Other DataFim do documento1. Accrued but unrecorded and uncollected consulting services revenue totals$1,800 at December 31, current year.2. The company determined that $3,000 of previously unearned consultingservices revenue had been earned at December 31, current year.3. Office supplies on hand at December 31 total $132.4. The company purchased all of its equipment when it first began business.At that time, the estimated useful life of the equipment was six years (72months).5. The company prepaid its six-month rent agreement on October 1, currentyear.6. The company prepaid its 12-month insurance policy on March 1, currentyear.7. Accrued but unpaid salaries total $2,280 at December 31, current year.

What is meant by Closing Entries? Closing entries are the journal entries passed at the end of the…

Answered: Silver Lining, Ic., provides investment…

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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Chocolate Corner Company had the following transactions during the current year:Apr. 8. Received a $7,050, 75-day, 8% note from Lance Armstrong in payment of account.May 24.Wrote off customer Joe Nutella's account against the Allowance for Uncollectible Accounts, $150June 22. Received payment of Lance Armstrong's note in full.Sept. 10.Gave a $5,600, 90-day, 9% note to Herbert Anson in payment of account.Sept.18. Received payment of Joe Nutella's account, written off May 24.Dec 9. Paid principal and interest due on note to Herbert Anson.Please Note: a 360-day year is standard for many such interest computations - for this course interest is to the nearest month rather than precisely to the day. Round interest to the nearest dollar (no cents).If needed record the above transactions in general journal form.The balance of Accounts Receivable at April 10th is: A.150 B. 7200 C. 575 This is the whole question. Nothing misses. Note:- Do not provide handwritten solution. Maintain accuracy…
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Omega Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31, Year 1: (1) A one-year bank loan of $684,000 at an annual interest rate of 10% had been obtained on December 1, Year 1. (2) The company pays all employees up-to-date each Friday. Since December 31, Year 1, fell on Tuesday, there was a liability to employees at that date for two day's pay amounting to $6,200. (3) On December 1, Year 1, rent on the office building had been paid for four months. The monthly rent is $5,400. (4) Depreciation of office equipment is based on an estimated useful life of six years. The balance in the Office Equipment account is $15,120; no change has occurred in the account during the year. (5) Fees of $9,200 were earned during the month for clients who had paid in advance. By what amount will the book value of the office equipment decline after the appropriate December…
Brushstroke Art Studio, Inc., provides quality instruction to aspiring artists. The business adjusts its accounts monthly, but performs closing entries annually on December 31. This is the studio’s unadjusted trial balance dated December 31, current year. Other Data1. Supplies on hand at December 31, current year, total $1,000. 2. The studio pays rent quarterly (every three months). The last payment was made November 1, current year. The next payment will be made early in February, next year. 3. Studio equipment is being depreciated over 120 months (10 years). 4. On October 1, current year, the studio borrowed $24,000 by signing a 12-month, 12 percent note payable. The entire amount, plus interest, is due on September 30, next year. 5. At December 31, current year, $3,000 of previously unearned client fees had been earned. 6. Accrued, but unrecorded and uncollected client fees earned total $690 at December 31, current year. 7. Accrued, but unrecorded and unpaid salary expense totals…
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information: November 30 Debit CreditSupplies $2,000Prepaid Insurance 8,000Salaries Payable $11,000Deferred Revenue 3,000The following information is known for the month of December:1. Purchases of supplies during December total $4,500. Supplies on hand at the end of December equal $3,500.2. No insurance payments are made in December. Insurance cost is $2,000 per month.3. November salaries payable of $11,000 were paid to employees in December. Additional salaries for December owed at the end of the year are $16,000.4. On November 1, a tenant paid Golden Eagle $4,500 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount.Required:Show the adjusting entries that…
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