Depreciation of $18,000 has not yet been charged on the equipment.
It was determined that $20,000 had been received in cash and credited to sales revenue, but the related consulting work was not provided until January 20, year 8.
Out of the prepaid insurance, only $30 remained as of December 31.
Office supplies of $2,200 were purchased during year 7 but were charged immediately to salaries, general, and administrative expense. At the year-end, office supplies costing $500 were still on hand.
Income taxes for year 7 were calculated to be $20,000 but have not yet been recorded.
Show adjusting entries for each and show the closing balances. Thank you.
Cash $1,300
Accounts Receivable $2,200
Inventory $6,000
Office Supplies $200
Prepaid Insurance $200
Equipment $215,000
Accumulated Depreciation
Land
Accounts Payable
Income Tax Payable
Note Payable
Retained Earnings
Sales Revenue
Cost of Sales $224,200
Salaries, General, and Administrative Expense $217,000
Insurance Expense $1,100
Interest Expense $2,000
Gain on disposal of land
Other Expenses $800
Total $670,000
Income Taxes $32,000
Prepaid Insurance $650
Depreciation Expense
Office Supplies
Total $670,000