An inexperienced accountant made the following adjustments to the accounting system of Airata,Inc.The adjustments were made based on the information below the accounting equation worksheet.
a.Unearned revenue has a December 31 balance of $10,000 before adjustment.Forty percent of the unearned revenue has been earned by the end of the year.
b.Before adjustment,the supplies account equals $800.Only $100 of the supplies remain as of the end of the year.
c.The equipment is depreciated by $10,000 per year.
d.Interest accrues on an $80,000,12%,6-month note payable that has been outstanding for the past three months.
e.Salaries earned by employees but not yet paid are $10,000.
Required: Cross out any incorrect account titles or dollar amounts in the worksheet shown above.Write in the correct account titles and dollar amounts where needed.

Question

An inexperienced accountant made the following adjustments to the accounting system of Airata,Inc.The adjustments were made based on the information below the accounting equation worksheet.
  a.Unearned revenue has a December 31 balance of $10,000 before adjustment.Forty percent of the unearned revenue has been earned by the end of the year.
b.Before adjustment,the supplies account equals $800.Only $100 of the supplies remain as of the end of the year.
c.The equipment is depreciated by $10,000 per year.
d.Interest accrues on an $80,000,12%,6-month note payable that has been outstanding for the past three months.
e.Salaries earned by employees but not yet paid are $10,000.
Required: Cross out any incorrect account titles or dollar amounts in the worksheet shown above.Write in the correct account titles and dollar amounts where needed.

Quizplus · Accepted Answer

The Answer of An inexperienced accountant made the following adjustments to the accounting system of Airata,Inc.The adjustments were made based on the information below the accounting equation worksheet.
  a.Unearned revenue has a December 31 balance of $10,000 before adjustment.Forty percent of the unearned revenue has been earned by the end of the year.
b.Before adjustment,the supplies account equals $800.Only $100 of the supplies remain as of the end of the year.
c.The equipment is depreciated by $10,000 per year.
d.Interest accrues on an $80,000,12%,6-month note payable that has been outstanding for the past three months.
e.Salaries earned by employees but not yet paid are $10,000.
Required: Cross out any incorrect account titles or dollar amounts in the worksheet shown above.Write in the correct account titles and dollar amounts where needed.

An Inexperienced Accountant Made the Following Adjustments to the Accounting