Everett Co. was organized on July 1, 2014. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.
|
EVERETT CO. Trial Balance September 30, 2014 |
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|
Cash Accounts Receivable Supplies Prepaid Rent Equipment |
Unadjusted |
Adjusted |
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|
$ 8,700 10,400 1,500 2,200 18,000 |
$ 8,700 |
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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 |
$56,43 5 |
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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?