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Financial Accounting

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What You Can Determine from the Unadjusted Trial Balance

FINACT-10QYR3

The unadjusted trial balance for Copter Inc. for the most recent year is shown below.

Unadjusted Trial Balance DEBIT CREDIT
Cash \$100,000
Accounts Receivable \$40,000
Prepaid Insurance \$10,000
Equipment, net \$300,000
Accounts Payable \$40,000
Unearned Revenues \$10,000
Common Stock \$100,000
Retained Earnings — ? —
Service Revenues \$600,000
Cost of Goods Sold \$150,000
Rent Expense \$50,000
Salaries & Wages Expense \$100,000
Other Operating Expenses \$40,000
Interest Expense \$10,000



What can you determine from this unadjusted trial balance?

A

The amount of the depreciation expense for the year.

B

The number of months of insurance paid in advance.

C

Some customers paid for their services in advance.

D

All sales were made on credit.