Miss Hap,the Inexperienced Accountant,made the Following Adjustments to the Accounting

question 155

Essay

Miss Hap,the inexperienced accountant,made the following adjustments to the accounting system of Bank,Rupp,& Baroque,Inc.The adjustments were made based on the information below the accounting equation worksheet.
a.Unearned revenue has a December 31 balance of $50,000 before adjustment.Sixty percent of the unearned revenue has been earned by the end of the year.
b.before adjustment the office supplies account is $600.Only $200 of the supplies remain as of the end of the year.
c.Depreciated the $100,000 equipment purchased two years ago.The estimated useful life is ten years,and it has $0 residual value.
d.Interest accrues on a $2,000,10% note receivable that has been outstanding the whole year.
e.Salaries and wages earned by employees but unpaid are $4,000.
Required: Cross out any incorrect account titles or dollar amounts in the worksheet shown above.Write in the correct account titles and dollar amounts where needed.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods or services that a consumer can purchase at given prices within his or her budget constraint.

Commodity 1

A basic good used in commerce that is interchangeable with other goods of the same type.

M.B.A.s

Master of Business Administration; a graduate degree focusing on business administration and investment management.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.