The unadjusted trial balance of Mighty Fine Services Inc. includes the following account balances at December 31, 2016, its fiscal year-end. No adjustments have been recorded. Assume all accounts have normal debit or credit balances.
|
Prepaid insurance |
$ 600 |
|
Unused supplies |
500 |
|
Bank loan |
5,000 |
|
Subscription revenue |
9,000 |
|
Salaries payable |
500 |
|
Rent expense |
3,900 |
|
Truck operating expense |
4,000 |
The following information applies to the fiscal year-end:
|
a. |
The $600 prepaid insurance is for a one-year policy, effective September 1, 2016. |
|
b. |
A physical count indicates that $300 of supplies is still on hand at December 31. |
|
c. |
Interest on the bank loan is paid on the fifteenth day of each month; the unrecorded interest for the last 15 days of December amounts to $25. |
|
d. |
The Subscription Revenue account consists of a cash receipts for 6-month subscriptions to the corporation’s Computer Trends report; the subscription period began December 1. |
|
e. |
Three days of salary amounting to $300 remain unpaid at December 31, in addition to the previous week’s salaries of $500, which have not yet been paid. |
|
f. |
The monthly rent expense amounts to $300. |
|
g. |
A bill for December truck operating expense has not yet been received; an amount of $400 is owed. |
Required: Prepare all necessary adjusting entries at December 31, 2016. General ledger account numbers and descriptions are not necessary.
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