Adjusting and closing entries
The following trial balance was taken from the books of Kaslo Corporation at December 31, 2020:
At year end, the following items have not yet been recorded.
1. Insurance expired during the year, $ 3,000.
2. Estimated bad debts, 1 percent of gross sales.
3. Depreciation on furniture and equipment, 10% per year.
4. Interest at 9% is receivable on the note for one full year.
5. Rent paid in advance at December 31, $ 6,800 (originally debited to expense).
6. Accrued salaries at December 31, $ 6,200.
Instructions
a) Prepare the necessary adjusting entries.
b) Prepare the necessary closing entries.

Question

Adjusting and closing entries
The following trial balance was taken from the books of Kaslo Corporation at December 31, 2020:
  At year end, the following items have not yet been recorded.
1. Insurance expired during the year, $ 3,000.
2. Estimated bad debts, 1 percent of gross sales.
3. Depreciation on furniture and equipment, 10% per year.
4. Interest at 9% is receivable on the note for one full year.
5. Rent paid in advance at December 31, $ 6,800 (originally debited to expense).
6. Accrued salaries at December 31, $ 6,200.
Instructions
a) Prepare the necessary adjusting entries.
b) Prepare the necessary closing entries.

Quizplus · Accepted Answer

The Answer of Adjusting and closing entries
The following trial balance was taken from the books of Kaslo Corporation at December 31, 2020:
  At year end, the following items have not yet been recorded.
1. Insurance expired during the year, $ 3,000.
2. Estimated bad debts, 1 percent of gross sales.
3. Depreciation on furniture and equipment, 10% per year.
4. Interest at 9% is receivable on the note for one full year.
5. Rent paid in advance at December 31, $ 6,800 (originally debited to expense).
6. Accrued salaries at December 31, $ 6,200.
Instructions
a) Prepare the necessary adjusting entries.
b) Prepare the necessary closing entries.

Adjusting and Closing Entries