Prepare Year-End Adjustments for the Following Transactions

question 141

Essay

Prepare year-end adjustments for the following transactions. Omit explanations.
1. Accrued interest on notes receivable is $30.
2. $1,000 of unearned service revenue has been recognized.
3. Three years' rent, totaling $45,000, was paid in advance at the beginning of the year.
4. Services totaling $2,900 had been performed but not yet billed at the end of the year.
5. Depreciation on equipment totaled $6,500 for the year.
6. Supplies purchased totaled $850. By year end, only $250 of supplies remained.
7. Salaries owed to employees at the end of the year total $960

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Definitions:

Plaintiff

A person or entity who initiates a lawsuit against another in a court of law.

Small Claims Court

A judiciary designed to resolve disputes involving relatively small financial amounts in a more informal, faster, and less expensive manner than traditional court systems.

Superior Trial Level Court

A high-level court that handles both civil and criminal cases, often involving serious matters or large sums of money.

Procedure

A formal method or series of actions conducted in a particular order or manner to achieve a legal task or to process legal actions.