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Accounting Case Study
Accounting Case Study
The following adjustments were found necessary at the end of the year:
1) The Truck depreciates using units of activity method. It has a useful life of 5
years, a salvage value of $3000 and estimated 400,000 km to travel. By the
end of the year the truck traveled 70,000 km.
2) Office supplies on hand are 1,200.
3) Interest on the loan is 18% annually and the loan was received November 1st.
4) Prepaid insurance was paid on April 1 st.
5) Unearned revenues that should be realized totaled 2,500.
6) Maintenance expenses that the accountant forgot to record totaled 3,000.
7) Sales revenues that aren't recorded totaled 1,500.
Required:
Prepare the Income Statement for 2019 and Balance Sheet for December 31, 2019.