Selected Data from BabCo

question 28

Essay

Selected data from BabCo.'s accounting system are provided below.All account 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 information below.The table does NOT include all of the accounts that will be adjusted.
a.Interest accrues on a $30,000 note payable at the rate of 6.5% per year and the note has been unpaid all year.
b.Equipment with a cost of $100,000,a 10-year estimated useful life,and salvage value of $5,000 was owned and used all year.
c.$300 of the supplies were used during the year.
d.The prepaid rent balance relates to a 12-month policy purchased on November 1,2011.
e.$500 of the unearned revenue is now earned.
f.The salaries expense account balance does not include $5,000 of employee salaries earned but unpaid.

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Definitions:

Appeal to Consumers

The process of attracting potential customers or clients by highlighting the benefits or attractiveness of a product or service.

Cognitive Strategies

Techniques or methods employed to facilitate learning, problem-solving, and memory, often by organizing information or employing mnemonic devices.

Pattern Recognition

The ability to detect trends, sequences, or similarities in data, often used in decision-making and prediction analyses.

Large Market

A broad and extensive market segment with a significant number of potential customers.