2 Questions about Trial Balance
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?
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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 |
