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:

Actual Notice

Directly being informed about something or being aware of a fact or situation.

Constructive Notice

A legal concept that assumes a person is aware of facts, notices, or documents even if they are not physically present, often used in property law to signify recorded documents.

Agency Coupled With Interest

An agency coupled with an interest is a situation in which an agent has been given rights or property interest in the subject matter of the agency, making the agency irrevocable for a specified period.

Agency Relationship

A legal relationship where one party (the agent) acts on behalf of another party (the principal), with the authority to create legal obligations.