Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3(10 points): the following trial balanc

Question 3(10 points): The following trial balance was taken from the books of Fisk...

60.1K

Verified Solution

Question

Accounting

Question 3(10 points):
The following trial balance was taken from the books of Fisk Corporation as of the end of
December 31,2014.
Account Debit Credit
Cash $ 9,000
Accounts Receivable 40,000
Notes Receivable 10,000
Allowance for Doubtful Accounts $ 1,800
Inventory 44,000
Prepaid Insurance 4,800
Equipment 110,000
Accumulated Depreciation--Equip. 15,000
Accounts Payable 10,800
Common Stock 44,000
Retained Earnings 55,000
Sales Revenue 280,000
Cost of Goods Sold 126,000
Salaries and Wages Expense 50,000
Rent Expense 12,800
Totals $406,600 $406,600
At year end, the following items have not yet been recorded.
a. The prepaid insurance was purchased on August 1,2014 and is for one calendar year.
b. Management estimates bad debts to be 1% of gross sales.
c. Depreciation on equipment is $11,000 for the year.
d. The note receivable was received on March 1,2014 and carries 12% interest per annum,
which has yet to be paid. 12% approximates the market rate of interest for such a note.
f. Workers work five days per week (Monday through Friday) and paychecks are distributed
every Friday. December 31,2014 is a Wednesday. Weekly payroll is $14,500

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