Data from the Accounting System of On-A-Roll,Inc

question 171

Essay

Data from the accounting system of On-a-Roll,Inc.are provided below.All amounts are before the current year's adjustments are recorded.All adjustments are recorded at yearend.
Prepare the balance sheet after year-end adjustments using the following additional information.
a.A count of supplies reveals $20 on hand at the end of the year.
b.One-third of the prepaid rent was used up during the year.
c.One-fourth of the equipment is depreciated each year.
d.$350 of work for customers has been completed but not yet billed or collected.
e.Salaries of $150 have been earned by employees but not paid.
f.On January 1 of the current year,the company borrowed $3,000 on a three-year note payable.Interest accrues on the note at the rate of 6% per year.

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Definitions:

Expendable Items

Items meant for one-time use or that have a limited life and are expected to be replaced after a period of use.

Restocked

The process of replenishing goods or supplies that have been depleted, especially in a retail or healthcare setting.

Sanitization

The process of cleaning and disinfecting to reduce the number of germs and bacteria to a safe level, as per public health standards.

Medical Offices

Facilities where health care professionals conduct examinations, provide treatments, and consult with patients.