Selected Data from RuthCo

question 195

Essay

Selected data from RuthCo.'s accounting system are provided below.All balances are BEFORE year-end adjustments and all data relate to the year ended December 31,2011.Determine the amount that will be reported for each of the items in the table below,after the appropriate adjustments have been made using the following information.Also indicate the financial statement where each item appears,using IS for the income statement and BS for the balance sheet.The table does NOT include all accounts that will be adjusted.
a.A $40,000 note payable has been unpaid all year and bears interest at 9%.
b.Equipment that was owned and used all year has a historical cost of $35,000,a 6-year estimated useful life,and a $5,000 estimated residual value.
c.$400 of the supplies were consumed during the year.
d.The prepaid insurance balance relates to a 12-month policy purchased on July 1,2011.
e.$18,000 of the unearned revenue is now earned.
f.Salaries expense does not include $15,000 of employee salaries that have been earned but not yet paid.

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Definitions:

Progesterone Secretion

The process by which progesterone, a hormone produced by the ovaries, is released into the bloodstream, playing a key role in regulating menstruation and pregnancy.

PTH

Parathyroid Hormone (PTH) is a hormone secreted by the parathyroid glands that regulates calcium levels in the blood.

Bone

Bone is a durable connective tissue comprised of collagen, calcium, and other minerals, forming the skeletal structure that supports and protects the body's organs and allows movement.

Kidneys

Vital organs responsible for filtering waste products from the blood and excreting them in urine, regulating electrolyte levels, and managing blood pressure.