Answer:
Account Title Debits Credits
Cash 34,900
Accounts receivable 42,600
Supplies 860
Inventory 62,600
Notes receivable 22,600
Interest receivable 1,507
Prepaid rent 1,150
Prepaid insurance 2,150
Office equipment 90,400
Accumulated depreciation 45,200
Accounts payable 33,600
Salaries payable 1,400
Notes payable 52,600
Interest payable 1,578
Deferred sales revenue 3,300
Common stock 78,200
Retained earnings 35,000
Dividends 6,600
Sales revenue 159,000
Interest revenue 1,507
Cost of goods sold 83,000
Salaries expense 21,600
Rent expense 13,450
Depreciation expense 11,300
Interest expense 1,578
Supplies expense 4,340
Insurance expense 6,450
Advertising expense 4,300
Totals 411,385 411,385
Insurance expense
= 8,600 * 9/12 months = $6,450
Prepaid Insurance = 8.600 - 6,450 = $2,150
Supplies expense = 2,400 + (2,800 - 860) = $4,340
Interest expense and Interest payable = 12% * 3/12 * 52,600 = $1,578
Rent = 12,300 + 1,150 = $13,450
Interest revenue = 22,600 + 8% * 10/12 months = $ 1,507
Accumulated depreciation = 33,900 + 11,300 = $45,200
