Use the Following Information to Prepare the Adjusted Trial Balance

question 152

Essay

Use the following information to prepare the adjusted trial balance for Bella's Beauty Salon. Bella's Beauty Salon's unadjusted trial balance for the current year follows:
Additional information:
a. An insurance policy examination showed $1,240 of expired insurance.
b. An inventory count showed $210 of unused shop supplies still available.
c. Depreciation expense on shop equipment, $350.
d. Depreciation expense on the building, $2,220.
e. A beautician is behind on space rental payments and this $200 of accrued revenue was unrecorded at the time the trial balance was prepared..
f. $800 of the Unearned Rent account balance was earned by year-end.
g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.
h. Three months' property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.
i. One month's interest on the note payable, $600, has accrued but is unrecorded.

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use doesn't reduce its availability to others.

Total Damage

The cumulative harm or loss resulting from an action or event, encompassing both material and immaterial impacts.

Market Level

A term denoting the scope or extent of a given market, which can range from local to global, affecting strategies and operations of businesses within.

Externality

A consequence of an economic activity experienced by unrelated third parties; can be positive or negative, affecting others not involved in the transaction.