The following account balances were taken from ABC Company’s unadjusted trial balance at December 31, 2020: Accounts...
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The following account balances were taken from ABC Company’s unadjusted trialbalance at December 31, 2020:Accounts Payable ............ $56,000Accounts Receivable ......... $42,000Cash ........................ $11,000Common Stock ................ $63,000Cost of Goods Sold .......... $52,000Income Tax Expense .......... $12,000Insurance Expense ........... $21,000Inventory ................... $70,000Land ........................ $68,000Mortgage Payable ............ $49,000Patent ...................... $31,000Prepaid Insurance ........... $17,000Rental Revenue .............. $46,000Retained Earnings ........... $72,000 (at January 1, 2020)Sales Revenue ............... $95,000Supplies .................... $19,000Wage Expense ................ $38,000ABC Company has not yet recorded adjusting entries related to the followingtwo items:(1) $11,000 of supplies were used up during 2020.(2) ABC Company has provided services to a customer totaling $14,000 as of December 31, 2020. However, the customer has not yet paid ABC Company.Calculate the total assets reported in ABC Company's December 31, 2020 balancesheet after the appropriate adjusting entries have been recorded and posted.
The following account balances were taken from ABC Company’s unadjusted trialbalance at December 31, 2020:Accounts Payable ............ $56,000Accounts Receivable ......... $42,000Cash ........................ $11,000Common Stock ................ $63,000Cost of Goods Sold .......... $52,000Income Tax Expense .......... $12,000Insurance Expense ........... $21,000Inventory ................... $70,000Land ........................ $68,000Mortgage Payable ............ $49,000Patent ...................... $31,000Prepaid Insurance ........... $17,000Rental Revenue .............. $46,000Retained Earnings ........... $72,000 (at January 1, 2020)Sales Revenue ............... $95,000Supplies .................... $19,000Wage Expense ................ $38,000ABC Company has not yet recorded adjusting entries related to the followingtwo items:(1) $11,000 of supplies were used up during 2020.(2) ABC Company has provided services to a customer totaling $14,000 as of December 31, 2020. However, the customer has not yet paid ABC Company.Calculate the total assets reported in ABC Company's December 31, 2020 balancesheet after the appropriate adjusting entries have been recorded and posted.
Answer & Explanation Solved by verified expert
|
Adjusting Entries |
|||
|
Date |
General Journal |
Debit |
Credit |
|
31-Dec |
Supplies Expense |
$ 11,000.00 |
|
|
Supplies |
$ 11,000.00 |
||
|
(Supplies Consumed) |
|||
|
31-Dec |
Accounts Receivable |
$ 14,000.00 |
|
|
Service Revenue |
$ 14,000.00 |
||
|
(Service revenue Recorded) |
|||
|
Assets |
Balance Before Adjustments |
Adjustments |
Balance After Adjustments |
|
Accounts Receivable |
$ 42,000.00 |
$ 14,000.00 |
$ 56,000.00 |
|
Cash |
$ 11,000.00 |
$ 11,000.00 |
|
|
Inventory |
$ 70,000.00 |
$ 70,000.00 |
|
|
land |
$ 68,000.00 |
$ 68,000.00 |
|
|
Patent |
$ 31,000.00 |
$ 31,000.00 |
|
|
Prepaid Insurance |
$ 17,000.00 |
$ 17,000.00 |
|
|
Supplies |
$ 19,000.00 |
$ (11,000.00) |
$ 8,000.00 |
|
Total |
$ 258,000.00 |
$ 3,000.00 |
$ 261,000.00 |
Total Assets to be reported in Company's December 31, 2020 balance
sheet after the appropriate adjusting entries will be $ 261,000.
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