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Silver Lining, Ic., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm's unadjusted trial balance dated December 31, current year, appears as follows. SILVER LINING, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Debit Credit Cash $51,402 Accounts receivable 2,400 Office supplies 246 Prepaid rent 1,440 Unexpired insurance 324 Office equipment 64,800 Accumulated depreciation: office equipment $42,300 Accounts payable 1,680 Interest payable 432 Income taxes payable 2,100 Notes payable 10,800

Silver Lining, Ic., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm's unadjusted trial balance dated December 31, current year, appears as follows. SILVER LINING, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Debit Credit Cash $51,402 Accounts receivable 2,400 Office supplies 246 Prepaid rent 1,440 Unexpired insurance 324 Office equipment 64,800 Accumulated depreciation: office equipment $42,300 Accounts payable 1,680 Interest payable 432 Income taxes payable 2,100 Notes payable 10,800

FINANCIAL ACCOUNTING
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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Rent expense Adjusting and Closing Entries 4,230 Insurance expense 1,212 Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm's unadjusted trial balance dated December 31, current year, appears as Salaries expense 32,520 Interest expense 432 Income taxes expense 8,280 follows. Totals $ 179,112 $ 179,112 SILVER LINING, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Debit Credit Other Data Cash $51,402 1. Accrued but unrecorded and uncollected consulting services revenue totals $1,800 at December 31, current year. Accounts receivable 2,400 Office supplies 246 2. The company determined that $3,000 of previously unearned consulting services 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 (72 months). 5. The company prepaid its six-month rent agreement on October 1, current Prepaid rent 1,440 Unexpired insurance 324 Office equipment 64,800 Accumulated depreciation: office equipment $42,300 Accounts payable 1.680 Interest payable 432 Income taxes payable 2,100 Notes payable 10,800 year. Unearned consulting services revenue 4,200 6. The company prepaid its 12-month insurance policy on March 1, current Capital stock 36,000 year. 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 on March 1, next year. Retained earnings 9,600 Dividends 1,200 Consulting services revenue 72,000 Office supplies expense 726 Depreciation expense: office equipment 9,900
Transcribed Image Text:Rent expense Adjusting and Closing Entries 4,230 Insurance expense 1,212 Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm's unadjusted trial balance dated December 31, current year, appears as Salaries expense 32,520 Interest expense 432 Income taxes expense 8,280 follows. Totals $ 179,112 $ 179,112 SILVER LINING, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Debit Credit Other Data Cash $51,402 1. Accrued but unrecorded and uncollected consulting services revenue totals $1,800 at December 31, current year. Accounts receivable 2,400 Office supplies 246 2. The company determined that $3,000 of previously unearned consulting services 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 (72 months). 5. The company prepaid its six-month rent agreement on October 1, current Prepaid rent 1,440 Unexpired insurance 324 Office equipment 64,800 Accumulated depreciation: office equipment $42,300 Accounts payable 1.680 Interest payable 432 Income taxes payable 2,100 Notes payable 10,800 year. Unearned consulting services revenue 4,200 6. The company prepaid its 12-month insurance policy on March 1, current Capital stock 36,000 year. 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 on March 1, next year. Retained earnings 9,600 Dividends 1,200 Consulting services revenue 72,000 Office supplies expense 726 Depreciation expense: office equipment 9,900
Consulting services revenue 72,000 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 on March 1, next year. Office supplies expense 726 Depreciation expense: office equipment 9,900 Rent expense 9. The company's CPA estimates that income taxes expense for the entire year is $9,000. The unpaid portion of this amount is due early in the next 4,230 Insurance expense 1,212 Salaries expense 32,520 year. Interest expense 432 Instructions Income taxes expense 8.280 Totals $ 179,112 $ 179,112 1. Prepare the necessary year-end closing entries. 2. Prepare an after-closing trial balance. Other Data Fim do documento 1. 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 consulting services 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 (72 months). 5. The company prepaid its six-month rent agreement on October 1, current year. 6. The company prepaid its 12-month insurance policy on March 1, current year. 7. Accrued but unpaid salaries total $2,280 at December 31, current year.
Transcribed Image Text:Consulting services revenue 72,000 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 on March 1, next year. Office supplies expense 726 Depreciation expense: office equipment 9,900 Rent expense 9. The company's CPA estimates that income taxes expense for the entire year is $9,000. The unpaid portion of this amount is due early in the next 4,230 Insurance expense 1,212 Salaries expense 32,520 year. Interest expense 432 Instructions Income taxes expense 8.280 Totals $ 179,112 $ 179,112 1. Prepare the necessary year-end closing entries. 2. Prepare an after-closing trial balance. Other Data Fim do documento 1. 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 consulting services 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 (72 months). 5. The company prepaid its six-month rent agreement on October 1, current year. 6. The company prepaid its 12-month insurance policy on March 1, current year. 7. Accrued but unpaid salaries total $2,280 at December 31, current year.
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