The Partial Unadjusted Trial Balance of Erif Corporation at December

question 155

Short Answer

The partial unadjusted trial balance of Erif Corporation at December 31, 2020 follows. All accounts have normal balances.
The following additional information is available at the December 31, 2020 year end: a. Insurance expense represents a 3-year insurance policy for the period from January 1, 2020 to December 31, 2022. b. A count of office supplies reveals that at December 31, 2020, the company had $500 of office supplies on hand. c. The company's lease, signed on January 1, 2020, specifies monthly rent of $4,000, or $48,000 a year. d. The December 2020 utility bill has not yet been received and is not included in the trial balance. The utility bill averages $400 a month. Required - Using the information above, find the balances in the following account balances, after adjustment, at December 31, 2020:
-Office Supplies Expense

---

Definitions:

Nominal Return

The return on an investment without adjusting for factors like inflation, representing the raw or unadjusted profit or loss.

After-Tax Real Rate

The interest rate after the adjustment for taxes and inflation.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.