The unadjusted trial balance of Langford Limited includes the following account balances at December 31, 2016, its fiscal year-end. Assume all accounts have normal debit or credit balances.
|
Short-term investments |
$15,000 |
|
Prepaid rent |
1,200 |
|
Unused supplies |
-0- |
|
Bank loan |
7,500 |
|
Unearned subscriptions revenue |
9,000 |
|
Insurance expense |
2,400 |
|
Salaries expense |
75,000 |
|
Supplies expense |
600 |
|
Utilities expense |
-0- |
The following information relates to the fiscal year-end:
|
a. |
Accrued interest revenue on the short-term investment amounts to $40 at December 31. |
|
b. |
The prepaid rent applies equally to the months of November and December 2016 and January 2017. |
|
c. |
Accrued interest expense on the bank loan amounts to $50 at December 31. |
|
d. |
One–third of the subscriptions revenue remains unearned at December 31. |
|
e. |
Insurance expense includes the cost of a one-year insurance policy, effective January 1, 2016, and the cost of a one-year renewal, effective January 1, 2017. The cost for each year is $1,200. |
|
f. |
Two days of salary have not yet been accrued at December 31; the usual salary for a five-day week is $2,500. |
|
g. |
A physical count indicates that $100 of supplies is still on hand at December 31. |
|
h. |
A $200 bill for electricity has not yet been recorded for December. |
Required: Prepare all necessary adjusting entries. General ledger account numbers and descriptions are not necessary.
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