Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 11 Oct 2017 My Price 9.00

Crimson Tide Music Academy

Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2012, appears below. December 31 is the company’s fiscal year-end.

Information necessary to prepare the year-end adjusting entries appears below.

a. Depreciation of equipment for the year is $5,000.

b. Accrued salaries at year-end should be $1,600.

c. Crimson Tide borrows $15,000 on September 1, 2012. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 10%.

d. Unused supplies at year-end total $600. Crimson Tide debits Supplies at the time supplies are purchased.

e. Crimson Tide opens a second studio by purchasing one year of rent in advance on April 1, 2012, for $6,000 ($500 per month) debiting Prepaid Rent.

f. Unpaid utilities for December total $100.

Required:

Record the necessary adjusting entries on December 31, 2012.

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Oct 2017 11:10 AM My Price 9.00

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