Peterman Co. was organized on July 1, 2012. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.
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PETERMAN CO. |
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Trial Balance |
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September 30, 2012 |
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Unadjusted |
Adjusted |
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|
Dr. |
Cr. |
Dr. |
Cr. |
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|
Cash |
$ 8,700 |
$ 8,700 |
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|
Accounts Receivable |
10,400 |
11,500 |
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Supplies |
1,500 |
650 |
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Prepaid Rent |
2,200 |
1,200 |
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Equipment |
18,000 |
18,000 |
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Accumulated Depreciation—Equipment |
$ –0– |
$ 700 |
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Notes Payable |
10,000 |
10,000 |
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Accounts Payable |
2,500 |
2,500 |
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Salaries and Wages Payable |
–0– |
725 |
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Interest Payable |
–0– |
100 |
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Unearned Rent Revenue |
1,900 |
1,050 |
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Owner’s Capital |
22,000 |
22,000 |
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Owner’s Drawings |
1,600 |
1,600 |
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Service Revenue |
16,000 |
17,100 |
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Rent Revenue |
1,410 |
2,260 |
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Salaries and Wages Expense |
8,000 |
8,725 |
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Rent Expense |
1,900 |
2,900 |
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Depreciation Expense |
700 |
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Supplies Expense |
850 |
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Utilities Expense |
1,510 |
1,510 |
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Interest Expense |
100 |
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|
$53,810 |
$53,810 |
$56,435 |
$56,435 |
Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and an owner’s equity statement for the 3 months ending September 30 and a balance sheet at September 30.
(c) If the note bears interest at 12%, how many months has it been outstanding?