Poblano Co. was organized on July 1, 2010. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.
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POBLANO CO. |
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Unadjusted |
Adjusted |
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|
Cash |
$ 8,700 |
$ 8,700 |
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|
Accounts Receivable |
10,400 |
11,200 |
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|
Supplies |
1,500 |
900 |
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|
Prepaid Rent |
2,200 |
1,300 |
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|
Equipment |
18,000 |
18,000 |
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|
Accumulated Depreciation—Equipment |
$ 500 |
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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 Payable |
725 |
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|
Interest Payable |
100 |
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|
Unearned Rent Revenue |
1,900 |
1,050 |
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|
Rikki Poblano, Capital |
22,000 |
22,000 |
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|
Rikki Poblano, Drawing |
1600 |
1600 |
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|
Commission Revenue |
16,000 |
16,800 |
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Rent Revenue |
1,410 |
2,260 |
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Salaries Expense |
8,000 |
8,725 |
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Rent Expense |
1,900 |
2,800 |
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Depreciation Expense |
500 |
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|
Supplies Expense |
600 |
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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 |
$55,935 |
$55,935 |
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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?