90.2K

Verified Solution

Link Copied!

Prepare adjusting entries and trial balance.

In January 1, 2023, Eagle International, Inc., had the following account balances in its general ledger. All accounts have a "normal" type of balance, i.e., a debit or credit balance, depending on the type of account. Cash 450,500 Accounts Receivable 325,250 Supplies 75,420 Prepaid Insurance 0 Equipment 750,000 Accumulated Depreciation 65,500 Accounts Payable 324,350 Interest Payable 0 Utilities Payable 0 Unearned Revenue 261,320 Notes Payable 0 Owner Capital 950,000 Withdrawals 0 Service Revenue 0 Rent Expense 0 Salaries Expense 0 Insurance Expense 0 Supplies Expense 0 Utilities Expense 0 Depreciation Expense 0 Interest Expense 0 January Transactions: Amount January 1Borrowed on a 24-month, 5% note. All principal and interest due at maturity. 300,000 January 2Paid cash for January insurance of the building. 2,400 January 4Purchased equipment with cash. 55,000 January 5Received cash from customers in payment of accounts receivable. 125,000 January 9Paid cash for a one-year insurance policy that covers the period from January 1, 2022 through December 31, 2022. 48,000 January 11Purchased supplies on account. 30,000 January 15Received cash for services provided to customers during January. 185,500 January 18Paid creditors on accounts payable. 275,400 January 28Billed customers for services provided during January. 245,000 January 29Received January utility bill to be paid in February 1,800January 31Owner withdrew cash. 12,000January 31Paid January salaries. 310,000

Adjusting Entries: The following information is available when preparing adjusting entries at month-end: 1.One month's insurance has been used 2.An inventory on January 31 showed supplies remaining were valued at: 67,5003.Unearned revenue was earned in the amount of 19,4004.Equipment is depreciated at a monthly rate of: 2,5005.One month's Interest must be accrued on the loan; annual rate is: 5%

Answer & Explanation Solved by verified expert

See Answer