Presented below is the trial balance of H.T Herbert Company for the year ended Dec. 31, 2020. H.T HERBERT COMPANY Trial Balance December 31, 2020 ACCOUNTS DR CR Cash $ 12,500.00 Account Receivable 20,000.00 Allowance for doubtful accounts 250.00 Notes Receivable 2,500.00 Unexpired Insurance Office Supplies on Hand Building Accumulated depreciation-Building 1,500.00 1,000.00 40,000.00 20,000.00 Equipement 15,000.00 Accumulated depreciation-Equipment Account Payable H.T. Herbert, Capital 10,000,00 5,000.00 20,000,00 H.T. Herbert, Drawing 9,000.00 Service Revenue 80,000.00 Salaries and Wages Expense Advertising Expense Utilities Expense Miscellaneous Expense 30,000.00 1,400.00 2,000.00 350.00 $ 135,250.00 $ 135,250.00 Data for adjustment 1. The allowance for doubtful accounts should be increased by 2 percent of year-end accounts receivable. 2. Accrued interest on notes receivable is $152. 3. Insurance expense for the year is $1,240. 4. A physical inventory shows that office supplies costing $273 are on hand at December 31, 2020. 5. The building is depreciated at the rate of 1o.5 percent per year. 6. The equipment is depreciated at the rate of 8 1/5 percent per year. 7. Accrued salaries and wages are $2,000. Requirements: A. Adjusting Entries B. Worksheet Cc. Income Statement (Report Format) D. Balance Sheet (Report Format)
Presented below is the trial balance of H.T Herbert Company for the year ended Dec. 31, 2020. H.T HERBERT COMPANY Trial Balance December 31, 2020 ACCOUNTS DR CR Cash $ 12,500.00 Account Receivable 20,000.00 Allowance for doubtful accounts 250.00 Notes Receivable 2,500.00 Unexpired Insurance Office Supplies on Hand Building Accumulated depreciation-Building 1,500.00 1,000.00 40,000.00 20,000.00 Equipement 15,000.00 Accumulated depreciation-Equipment Account Payable H.T. Herbert, Capital 10,000,00 5,000.00 20,000,00 H.T. Herbert, Drawing 9,000.00 Service Revenue 80,000.00 Salaries and Wages Expense Advertising Expense Utilities Expense Miscellaneous Expense 30,000.00 1,400.00 2,000.00 350.00 $ 135,250.00 $ 135,250.00 Data for adjustment 1. The allowance for doubtful accounts should be increased by 2 percent of year-end accounts receivable. 2. Accrued interest on notes receivable is $152. 3. Insurance expense for the year is $1,240. 4. A physical inventory shows that office supplies costing $273 are on hand at December 31, 2020. 5. The building is depreciated at the rate of 1o.5 percent per year. 6. The equipment is depreciated at the rate of 8 1/5 percent per year. 7. Accrued salaries and wages are $2,000. Requirements: A. Adjusting Entries B. Worksheet Cc. Income Statement (Report Format) D. Balance Sheet (Report Format)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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Depreciation Methods
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Presented below is the trial balance of H.T Herbert Company for the year ended Dec. 31, 2020.
H.T HERBERT COMPANY
Trial Balance
December 31, 2020
ACCOUNTS
DR
CR
Cash
$ 12,500.00
Account Receivable
20,000.00
Allowance for doubtful accounts
$
250.00
Notes Receivable
2,500.00
Unexpired Insurance
1,500.00
Office Supplies on Hand
Building
Accumulated depreciation-Building
Equipement
1,000.00
40,000.00
20,000.00
15,000.00
10,000,00
Accumulated depreciation-Equipment
Account Payable
5,000,00
H.T. Herbert, Capital
20,000.00
H.T. Herbert, Drawing
Service Revenue
9,000.00
80,000,00
Salaries and Wages Expense
30,000.00
Advertising Expense
Utilities Expense
1,400.00
2,000.00
Miscellaneous Expense
350.00
$ 135,250.00 $ 135,250.00
Data for adjustment
1. The allowance for doubtful accounts should be increased by 2 percent of year-end accounts receivable.
2. Accrued interest on notes receivable is $152.
3. Insurance expense for the year is $1,240.
4. A physical inventory shows that office supplies costing $273 are on hand at December 31, 2020.
5. The building is depreciated at the rate of 10.5 percent per year.
6. The equipment is depreciated at the rate of 8 1/5 percent per year.
7. Accrued salaries and wages are $2,000.
Requirements:
A. Adjusting Entries
B. Worksheet
c. Income Statement (Report Format)
D. Balane
heet (Report Format)
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