P5.3. Exacto Hospital?s p

P5.3. Exacto Hospital?s p

P5.3. Exacto Hospital?s preadjusted trial balance at December 31, 20X1,included the following accounts, among others:Acct.No.107 Prepaid insurance $ 5,760108 Prepaid rent 2,700109 Prepaid interest 3,600202 Notes payable 80,000203 Accrued interest payable -0-204 Accrued salaries and wages payable -0-250 Bonds payable 400,000601 Salaries and wages expense 755,200604 Insurance expense -0-Chapter Five: Prepaid and Accrued Expenses 111606 Rent expense -0-608 Interest expense -0-The following additional information is available:1. A three-year insurance premium was prepaid on January 1, 20X1.2. One year?s rent was paid in advance on June 1, 20X1.3. On December 1, 20X1, an $80,000, 9 percent, six-month loanwas obtained from a local bank. Interest was prepaid.4. Unpaid salaries and wages at December 31, 20X1, totaled $68,700.5. On October 1, 20X1, $400,000 of 6 percent, ten-year bondswere issued at face value. Interest on these bonds is payableannually on October 1, beginning October 1, 20X2.

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