E3-12B (Prepare Financial Statements) Comp Corp. was founded by Kevin Flynn in January 2008.
mujionostevoE3-12B (Prepare Financial Statements) Comp Corp. was founded by Kevin Flynn in January 2008. Presented below is the adjusted trial balance as of December 31, 2014.
COMP CORP.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2014
Dr. Cr.
Cash $ 2,500
Accounts Receivable 35,600
Supplies 7,100
Prepaid Insurance 3,000
Equipment 30,000
Accumulated Depreciation—Equipment $ 12,000
Accounts Payable 17,600
Interest Payable 200
Notes Payable 10,000
Unearned Service Revenue 2,100
Salaries and Wages Payable 400
Common Stock 20,000
Retained Earnings 7,060
Service Revenue 53,600
Salaries and Wages Expense 25,600
Insurance Expense 600
Interest Expense 960
Depreciation Expense 2,500
Supplies Expense 7,100
Rent Expense 8,000
$122,960 $122,960
6
The Accounting Information System
Instructions
(a) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014, and an unclassified balance sheet at December 31.
(b) Answer the following questions.
(1) If the note has been outstanding 2 months, what is the annual interest rate on that note?
(2) If the company paid $26,400 in salaries in 2014, what was the balance in Salaries and Wages
Payable on December 31, 2013?
13 years ago
Purchase the answer to view it
e3-12b.docx
