ACC210 Module 4 (Ch 4) Homework #1
Using the Excel file provided below as a starting point, or by creating your own Excel file, complete the following problem, and submit your assignment as an attachment here. Be sure to save your work before you submit, and present your work in a reasonable format with major answers highlighted. Because you have plenty of time to do this assignment, and given that the textbook is available for your use, this assignment should really be close to perfect.
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Here is the problem:
The following unadjusted trial balance and additional data are for Fake Sale Realty Company, as of December 31, 2020:
| Debit | Credit | |
| Cash | 34,000 | |
| Accounts Receivable | 3,570 | |
| Supplies on Hand | 1,590 | |
| Prepaid Rent | 26,040 | |
| Equipment | 94,500 | |
| Accumulated Depreciation | 17,600 | |
| Accounts Payable | 30,600 | |
| Capital Stock | 40,000 | |
| Retained Earnings, Jan. 1, 2020 | 21,000 | |
| Dividends | 4,000 | |
| Commissions Revenue | 246,000 | |
| Salaries Expense | 190,330 | |
| Misc. Expense | 1,170 | |
| Totals | 355,200 | 355,200 |
Here is the information needed for the adjustment:
| 1. The prepaid rent shown on the trial balance if for the six-month period from November 1, 2020 to April 30, 2021. |
| 2. The equipment was purchased in a previous year, had an estimated life of 10 years at the time of purchase, has an expected salvage value of $5,000, and is being depreciated using the straight-line method. |
| 3. Salaries earned by employees the last few days of 2020, but unpaid as of Dec. 31, 2020 amount to $1,400. |
| 4. A physical count of the supplies on hand as of December 31, 2020 revealed that $690 were remaining. |
Required: Complete the worksheet for the year ended Dec. 31, 2020.
DETAILED ASSIGNMENT
