2 Questions about Trial Balance

Sep 10th, 2015
Anonymous
Category:
Accounting
Price: $10 USD

Question description

1. Refer to the trial balance for Morrell, Inc.

According to contracts, $4,810 of Unearned Service Revenue has been earned in July. Which of the following is the correct amount of Service Revenue to be reported in the July income statement?

2. On July1, Morrell paid four months in advance for insurance.  Which of the following is included in the adjusting entry at July 31?  


Morrell, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows:

 

  Debit

  Credit

  Cash

  $12,920

 

  Accounts Receivable

  9,620

 

  Supplies

  1,300

 

  Prepaid Insurance

  3,120

 

  Equipment

  26,000

 

  Accumulated Depreciation - Equipment

 

  $10,400

  Unearned Service Revenue

 

  6,500

  Capital Stock

 

  7,190

  Retained Earnings

 

  23,400

  Dividends

  1,560

 

  Service Revenue

 

  16,510

  Wages and Salaries Expense

  7,800

 

  Utilities Expense

  380

 

  Rent Expense

  1,300

 

 

  $64,000

  $64,000



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