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:

Physiological Needs

Basic physical requirements for human survival, such as food, water, and shelter, as identified in Maslow's hierarchy of needs.

Behavior Psychology

A field of psychology focused on studying and understanding observable behaviors and the processes that underlie them.

John B. Watson

An American psychologist and one of the founders of behaviorism, emphasizing the importance of observable behavior over internal mental processes.

Behaviorism

A theory of learning which states that all behaviors are acquired through conditioning, emphasizing the role of environmental factors in shaping behavior.