Below is the unadjusted trial balance of FOURCO. Debit Credit...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Below is the unadjusted trial balance of FOURCO.
Debit
Credit
Cash
$18,300
Accounts receivable
27,000
Prepaid rent
5,000
Office supplies
1,200
Equipment
21,800
Accumulated depreciation
$6,000
Notes payable
8,000
Accounts payable
3,000
Unearned fees
14,000
Capital stock
18,000
Retained earnings
16,000
Fees earned
30,000
Salaries expense
14,000
Utilities expense
2,000
Insurance expense
5,800
Totals
$96,000
$96,000
FOURCO signed a note payable at the beginning of the current month. The note carries an interest rate of 6%. The note and all of the interest are due in three months. Which is the correct adjusting journal entry to record interest for the current month?
Debit Interest expense 160 and credit Interest payable 160
Debit Interest expense 480 and credit Interest payable 480
Debit Interest expense 40 and credit Interest payable 40
Debit Interest expense 120 and credit Interest payable 120
After all of the adjusting entries are posted, what will be the amount of net income that FOURCO reports on its income statement?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
