Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. before year-end adjustments are made, the december

Before year-end adjustments are made, the December 31, 2019trial balance of XYZs Adventures contains revenue...

80.2K

Verified Solution

Question

Accounting

Before year-end adjustments are made, the December 31, 2019trial balance of XYZs Adventures contains revenue of $10,000 and expenses of $8,700. Adjustments are necessary for the following items:

  1. Depreciation for the year is $2,000.
  2. Revenue earned but not yet billed is $5,300.
  3. Accrued interest expense is $1,100.
  4. Supplies used, $150.
  5. Revenue collected in advance that is now earned is $9,000.
  6. Portion of prepaid insurance expired during the year is $600.

Requirements:

  1. Record the above adjusting entries in the Journal.[12 Marks]
  2. Open One T-account and post to Service Revenue account ONLY, then compute its adjusted balance as on December 31,2019.[4 Marks]
  3. Calculate the correct Net Income (Net Loss) for XYZs Adventures for the year ended Dec.31, 2019 (After adjustments). [4 Marks]

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students