Reference no: EM132468530
Problem - The trial balance of Bullwinkle's Handyman Repair and Painting on December 31, 2020 appeared as follows: DR CR Cash 125 Accounts Receivable 95 Supplies 35 Prepaid Rent 150 Prepaid Insurance 240 Equipment 900 Accumulated Depr. -Equip. 150 Accounts Payable 75 Notes Payable 200 Unearned Repair Revenue 330 Common Stock 150 Retained Earnings 260 Dividends Declared 100 Repair Revenue 980 Advertising Expense 110 Salaries Expense 320 Utilities Expense 70 Totals 2,145 2,145 Following is the adjusting data on December 31, 2020. Adusting entries are prepared ANNUALLY (once each year) on December 31.
a. There are $8 of supplies on hand on December 31.
b. Depreciation on the equipment is $50 per year.
c. Accrued interest on the note payable is $20.
d. As of December 31, $60 of repair services had been performed but were unbilled and therefore, unrecorded.
e. Back on November 1, $330 cash had been received in advance from a customer for repair services to be performed over the next three months beginning on November 1.
f. Back on March 1, $240 cash was paid for a one year insurance policy. The policy's effective date was March 1.
g. Accrued salaries on December 31 are $40.
REQUIRED - Prepare the required adjusting entries for Bullwinkle on December 31, 2020.