problem: Given below are the unadjusted general ledger account balances of Olsen firm at June 30, 2009 [amounts are reflected at their normal balance]:
|
Cash
|
6,775
|
|
Accounts Receivable
|
2,500
|
|
Office Supplies
|
950
|
|
Prepaid Insurance
|
2,000
|
|
Building
|
100,000
|
|
Accumulated Depreciation - Bldg.
|
60,000
|
|
Delivery Van
|
36,000
|
|
Accumulated Depreciation - Van
|
1,200
|
|
Accounts Payable
|
5,500
|
|
Unearned Rent Revenue
|
800
|
|
Note Payable
|
18,000
|
|
Common Stock
|
20,000
|
|
Retained Earnings
|
26,000
|
|
Service Revenue
|
39,000
|
|
Rent Revenue
|
4,000
|
|
Wage Expense
|
21,600
|
|
Insurance Expense
|
475
|
|
Depreciation Expense - Building
|
2,500
|
|
Depreciation Expense - Van
|
1,200
|
|
Supplies Expense
|
500
|
Additional data is available on June 30, 2009, the end of a monthly accounting period.
[A] Olsen Firm purchased a 2 year insurance policy on February 1, 2009 and debited Prepaid Insurance for $2,400.
[B] On January 1, 2009, a tenant in an apartment building owned by Olsen Firm paid six months' rent in advance. The amount received was credited to Unearned Rent Revenue.
[C] A count of office supplies at June 30 revealed $240 of supplies on hand.
[D] On March 31, 2009, Olsen Firm purchased a delivery van for $36,000. Yearly depreciation is estimated to be $7,200.
[E] The depreciation on the building for June has already been recorded.
[F] Olsen Firm has two office employees who earn $80 and $100 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. June 30 is a Tuesday in 2009.
[G] On June 1, Olsen Firm signed a 6-month, 8%