Selected Data from Babel Co

question 184

Essay

Selected data from Babel Co.'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:
a.The note has been unpaid all year and bears interest at 5 %.
b.The equipment,which was owned and used all year,has a 3-year estimated useful life with a $0 estimated residual value.
c.$500 of the supplies were used during the year.
d.The Prepaid insurance balance relates to a 6-month policy purchased on April 1,2011.
e.$5,000 of the unearned revenue is now earned.
f.The Salaries expense account balance does not include $25,000 of employee salaries earned but unpaid.

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Definitions:

Apparel Company

A business involved in the design, manufacturing, and/or sale of clothing and fashion accessories.

Stitching Process

The stitching process involves joining fabrics or materials together with thread and needle, commonly utilized in textile manufacturing and tailoring.