The unadjusted trial balance of Inaknot Insurance Corp. includes the following account balances at December 31, 2016, its fiscal year-end. Assume all accounts have normal debit or credit balances.
|
Prepaid insurance |
$ 1,800 |
|
Truck |
18,000 |
|
Unearned commissions revenue |
9,000 |
|
Rent earned |
-0- |
|
Advertizing expense |
5,000 |
|
Salaries expense |
25,000 |
|
Supplies expense |
900 |
The following information is available:
|
a. |
A physical count indicates that $200 of supplies have not been used at December 31. |
|
b. |
The prepaid insurance consists of a one-year policy, effective October 1. |
|
c. |
The truck was purchased on July 1; it is expected to have a useful life of 6 years. No depreciation has been recorded during the year. |
|
d. |
The unearned commission revenue at December 31 is $7,500. |
|
e. |
Two days of salary amounting to $200 remain unpaid and unrecorded at December 31; the amounts will be included with the next Friday’s payment, which will be in January. |
|
f. |
Rental revenue of $300 has not yet been received for a sublet of part of a warehouse for 2 weeks during December. |
|
g. |
A $300 bill for December advertizing has not yet been recorded. |
Required: Prepare all necessary adjusting entries at December 31, 2016. General ledger account numbers and descriptions are not necessary.
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