Question

The unadjusted trial balance for Hawkeye Ranges as December 31, 2015, is given below

Answer 1

Answer:

a.

Salaries Expense $2,000 (debit)

Salaries Payable $2,000 (credit)

b.

Supplies $1,400 (debit)

Trading Account $1,400 (credit)

c.

Interest Expense $2,250 (debit)

Note Payable $2,250 (credit)

d.

Revenue $2,600 (debit)

Deferred Revenue $2,600 (credit)

e.

Trade Receivables $13,300 (debit)

Revenue $13,300 (credit)

f.

Depreciation $24,200 (debit)

Accumulated depreciation $24,200 (credit)

Explanation:

Matching or Accrual Principle of Accounting, requires that transactions be recorded when they occur or accrue.

The following items have not yet accrued as at December 31 and must not be recorded or adjusted.

a. The next payday with a Salary of $2,500

b. The next interest expense with an interest of $2,700

c. Member Fees expected to be collected in January for services to be rendered in January.