Transaction Analysis Assignment

3-35 Account Numbers, T-Accounts, and Transaction Analysis Consider the following: OBJECTIVES 3, 4 Vancouver Computing Trial Balance, December 31, 20X0 ($ in thousands) Balance Account Number Account Titles Debit Credit 10 Cash 60 20 Accounts receivable 115 21 Note receivable 100 30 Inventory 130 40 12 Prepaid insurance Equipment Accumulated depreciation, equipment 120 70 $ 30 70A 140 Accounts payable 80 65 Paid-in capital 100 182 Retained earnings 110 950 Sales revenue 130 550 Cost of goods sold 150 200 Wages expense 160 80 Miscellaneous expense 170 $1,367 $1,367 RECORDING TRANSACTIONS CHAPTER 3 The following information had not been considered before preparing the trial balance: signed by a major customer. It is a 3-month note dated a. The $100,000 note receivable was November 1, 20XO. Interest earned during November and December was collected in cash at 4 PM on December 31. The interest rate is 6% per year b. The Prepaid Insurance account reflects a 1-year fire insurance policy acquired for $12,000 cash on September 1, 20X0. c. Depreciation for 20X0 was $18,000. d. Vancouver Computing paid wages of $12,000 in cash at 5 PM on December 31. Required 1. Enter the December 31 balances in T-accounts in a general ledger. Number the accounts. Allow room for additional T-accounts. 2. Prepare the journal entries prompted by the additional information. Show amounts in thousands. 3. Post the journal entries to the ledger. Key your postings. Create logical new account numbers as necessary 4. Prepare a new trial balance, December 31, 20X0. .