Transcribed Image Text: Rent expense Adjusting and Closing Entries 4,230 Insurance expense 1,212 Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries

Transcribed Image Text: Rent expense
Adjusting and Closing Entries
4,230
Insurance expense
1,212
Silver Lining, Inc., provides investment advisory services. The company adjusts
its accounts monthly, but performs closing entries annually on December 31.
The firm’s unadjusted trial balance dated December 31, current year, appears as
Salaries expense
32,520
Interest expense
432
Income taxes expense
8,280
follows.
Totals
$ 179,112 $ 179,112
SILVER LINING, INC.
UNADJUSTED TRIAL BALANCE
DECEMBER 31, CURRENT YEAR
Debit Credit
Other Data
Cash
$51,402
1. Accrued but unrecorded and uncollected consulting services revenue totals
$1,800 at December 31, current year.
Accounts receivable
2,400
Office supplies
246
2. The company determined that $3,000 of previously unearned consulting
services revenue had been earned at December 31, current year.
3. Office supplies on hand at December 31 total $132.
4. The company purchased all of its equipment when it first began business.
At that time, the estimated useful life of the equipment was six years (72
months).
5. The company prepaid its six-month rent agreement on October 1, current
Prepaid rent
1,440
Unexpired insurance
324
Office equipment
64,800
Accumulated depreciation: office equipment $42,300
Accounts payable
1.680
Interest payable
432
Income taxes payable
2,100
Notes payable
10,800
year.
Unearned consulting services revenue
4,200
6. The company prepaid its 12-month insurance policy on March 1, current
Capital stock
36,000
year.
7. Accrued but unpaid salaries total $2,280 at December 31, current year.
8. On June 1, current year, the company borrowed $10,800 by signing a 9-
month, 8 percent note payable. The entire amount, plus interest, is due on
March 1, next year.
Retained earnings
9,600
Dividends
1,200
Consulting services revenue
72,000
Office supplies expense
726
Depreciation expense: office equipment
9,900 Transcribed Image Text: Consulting services revenue
72,000
8. On June 1, current year, the company borrowed $10,800 by signing a 9-
month, 8 percent note payable. The entire amount, plus interest, is due on
March 1, next year.
Office supplies expense
726
Depreciation expense: office equipment
9,900
Rent expense
9. The company’s CPA estimates that income taxes expense for the entire
year is $9,000. The unpaid portion of this amount is due early in the next
4,230
Insurance expense
1,212
Salaries expense
32,520
year.
Interest expense
432
Instructions
Income taxes expense
8.280
Totals
$ 179,112 $ 179,112
1. Prepare the necessary year-end closing entries.
2. Prepare an after-closing trial balance.
Other Data
Fim do documento
1. Accrued but unrecorded and uncollected consulting services revenue totals
$1,800 at December 31, current year.
2. The company determined that $3,000 of previously unearned consulting
services revenue had been earned at December 31, current year.
3. Office supplies on hand at December 31 total $132.
4. The company purchased all of its equipment when it first began business.
At that time, the estimated useful life of the equipment was six years (72
months).
5. The company prepaid its six-month rent agreement on October 1, current
year.
6. The company prepaid its 12-month insurance policy on March 1, current
year.
7. Accrued but unpaid salaries total $2,280 at December 31, current year.

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