1/1 beginning balances

indian pays off the beginning salaries payable balance

1/12 indian buys 1,000 units of inventory at a per unit cost of $16 on account, terms net/60

1/19 inian pays off the beginning income taxes payable balance

1/21 indian sells 1,100 units to sallah co. for $85 each on credit, terms 2/15, net/45

1/31 indiana pays off $30,000 of the beginning accounts payable balance

2/7 indiana pays for $4,000 of magazine advertising.

2/15 indian writes off the A/R balance owed by short Round co. and uncollectable ( see instructions

2/18 indiana collects the amount owed by sallah co. outside of the discount period.

2/27 indiana pays $18,000 of the interest payable balance

indian pays off the 1/12 purchase

indian sells 500 units to ravenwood LLC within the discount period

3/14 indiana collects the amount owed by ravenwood LLC within the discount period.

3/24 indian buys 1,200 units of inventory at a per unit cost of $18 on account, terms net/60

4/1 indiana provides the services owed to a client. The client paid indian $30,000 last year

4/8 indian pays off the beginning dividends payable balance

4/12 indian pays off the 3/24 purchase.

4/25 indian sells 800 units to Mola Ram, Inc for $90 each on credit, terms 2/15, net/45

5/1 inidan grants Mola, ram, Inc an allowance of $4,000 for damaged goods from the 4/25 sale

indian collects the amount owed by Mola Ram, Inc. within the discount period

5/15 indiana pays toht, dietrich and gobier gmbh for miscellaneous expenses for $10,000

5/27 indian buys 1,500 units of inventory at a per unit cost of $20 on account, term net/60

6/3 indian collects the amount owed by Barrance Inc. (see instructions) no discount applied

6/27 indiana pays for 6,000 of magazine advertising

7/3 indian pays off the 5/27 purchase

7/10 indian sells 1,600 units of Elsa Schneider Co, for $92 each on credit, term 2/15, net/45

7/17 indian buys office supplies for $5,000 on credit, terms net/45

7/27 indian pays off the 7/17 purchase

8/9 indian collects the amount owed by else Schneider co. outside the discount period.

8/24 indiana pays off $20,000 of the beginning accounts payable balance

8/27 indiana buys 900 units of inventory at a per unit cost of $23 on an account, term net/60

9/1 indiana sells 500 units to Panlot Construction for $92 each in cash

9/12 indian pays of the 8/27 purchase

9/30 indian buys a short-term investment for 50,000

10/4 indian sells 750 units to maharjah sign co. for $93 each on credit, term 2/15, net 45

10/15 indian collects the amount owed by maharajh sign co. within the discount period

10/31 indian receives $12,000 in advance for services to be provided next year

11/9 indian buys 1,000 units of inventory at a per unit cost of $25 on account, terms net/60

11/19 indiana buys office supplies for $4,000 in cash

11/27 indian pays for postage, shipping costs, and other miscellaneous items(total of $3,000)

12/4 indiana pays off the 11/9 purchase

12/4 indiana pays off the 11/9 purchase

12/12 indian buys 600 units of inventory at a per unit cost of $26 on account, terms net/60

12/16 indian sells 1,000 units to Kazim & Brothers co. for $95 each on credit, terms 2/15, net/45

12/29 indian sells 80,000 services to Belloq LLC on credit, terms 2/15, net/45

12/31 indian declares a dividend of $15,000 to be paid next year

12/31 indian buys $500 office supplies in cash

Begging balance for each of the following:

1. Cash: 130,000

2. Accounts Receivable: 25,000

3. Allowance for doubtful accounts: (8,000)

4. Merchandise Inventory 30,000 (2,000 units at a cost of $15/units

5. Office supplies: 1,200

6. Prepaid insurance 15,000

7. Land 50,000

8. Building 300,000

9. Accumulated deprecation building (60,000)

10. Equipment 600,000

11. Accumulated Depreciation equipment (100,000)

12. Intangible assets patent 30,000

13. Accounts Payable 50,000

14. Salaries Payable: 12,000

15. Income Taxes Payable 12,000

16. Interest Payable: 22,000

17. Unearned revenue: 30,000

18. Dividends payable: 15,000

19. Notes Payable: 370,000

20. Common Stock: 100,000

21. Additional paid in capital: 230,000

22. Retained earnings: 172,200

Adj. Adjusting entries.

#1 Salaries incurred and paid is $80,000

Salaries incurred but unpaid is $20,000

Total salaries for the year is $100,000

#2 Depreciation on the Equipment is based on a useful life of 10 years and $100,000 salvage value.

#3 The amortization expense for the year is $7,000. Decrease the patent asset.

#4 The adjustment to bad debt expense should be based on a desired ending balance in the Allowance for Doubtful Accounts account of 10% of the ending A/R balance (hint: there is already a balance in the Allowance Account)

#5 Depreciation on the Building is based on a useful life of 40 years and no salvage value.

#6 The insurance at the beginning of the year is prepaid for three years. At the end of the current year, one year's worth has expired. Record the adjustment for the used up insurance amount.

#7 The short-term investment purchased on 9/30 for $50,000 at an annual interest rate of 7%. Accrue the interest earned. The interest will be received next year

#8 Utilities for the year were $9,500 and will be paid next year.

#9 A count of the remaining office supplies at the end of the year indicates that there is only $1,000 of supplies left. Make the adjustment to account for the used up supplies.

#10 Incurred but unpaid income taxes amount to $45,000.

#11 The annual interest rate on the note payable is 8.25%. The note has been outstanding for the entire year (for the amount of the note, see the beginning balance

Using the information above fill out the missing information on the following images.

Adjusting Entries Si no. Description Debit Credit $ 1,00,000 1 Salaries & wages cash Salaries & wages Payable (being expenses incurred) $ $ 80,000 20,000 $ 50,000 2 Depreciation Accumulated depreciation-equipment (being depreciation recorded) $ 50,000 $ 7,000 3 Amortisation expenses Intangible asset patent (being patent amortised) $ 7,000 $ 22,100 4 Bad Debts expense Allowance for Doubtful debts (being reserve created) $ 22,100 $ 7,500 5 Depreciation Accumulated depreciation-building (being depreciation recorded) $ 7,500 5,000 6 Insurance expense (15000/3) $ Prepaid Insurance (being one year insurance expense recognised) $ 5,000 $ 875 7 Interest Receivable (50000*7% *3/12) Interest income (being interest income accrued) $ 875 $ 9,500 8 Utilities expense Utilities Payable (being expenses recorded) $ 9,500 $ 9,700 9 Office Supplies Expenses Office Supplies (being expenses recorded) $ 9,700 10 Income tax expenses Income tax payable (being tax accrued) IS 45,000 | $ 45,000 $ 30,525 11 Interest expenses (370000*8.25%) Interest payable $ 30,525 Workings- Calculation of Accounts receivable at the end Opening balance (net) Add: Sales made during the year Less: cash received Closing balance $ 25,000 $ 6,45,950 $ 4,49,950 $ 2,21,000 In the books of Indiana General Journal Date Description Debit Credit $ 12,000 Jan-08 Salaries Payable Cash (being outstanding salaries paid in cash) $ 12,000 $ 16,000 Jan-12 Merchandise Inventory (1000*16) Accounts Payable (being inventory purchased) $ 16,000 $ 12,000 Jan-19 Income tax payable Cash (being income tax paid in cash) $ 12,000 $ 93,500 Jan-21 Accounts Receivable (1100*85) Sales Revenue (being credit sales made) $ 93,500 $ 16,500 Jan-21 Cost of goods sold Merchandise Inventory (1100*15) (being cost of goods sold recorded) $ 16,500 $ 30,000 Jan-31 Accounts Payable Cash (being cash paid) $ 30,000 $ 4,000 Feb-07 Advertising expenses Cash (being expenses paid) $ 4,000 S Feb-15 Allownace for Doubtful debts Accounts Receivable (being debtors written off) 8,000 IS 8,000 $ 93,500 Feb-18 Cash Accounts Receivable (being cash received) $ 93,500 $ 18,000 Feb-27 Interest Payable cash (being outstanding interet paid in cash) $ 18,000 $ 16,000 Mar-04 Accounts Payable Cash (being cash paid) $ 16,000 Mar-08 Accounts Receivable (500*85) $ 42,500 Sales Revenue (being credit sales made assuming price @ $ 85) $ 42,500 $ 7,500 Mar-08 Cost of goods sold Merchandise Inventory (500*15) (being cost of goods sold recorded) $ 7,500 $ 41,650 $ 850 Mar 14 Cash Discount allowed (42500*29) Accounts Receivable (being cash received and discount given) $ 42,500 $ 21,600 Mar-24 Merchandise Inventory (1200*18) Accounts Payable (being inventory purchased) $ 21,600 $ 30,000 Apr-01 Unearned Revenue Sales revenue (being revenue recorded) $ 30,000 $ 15,000 Apr-08 Divivdend Payable Cash (being outstnding dividend paid in cash) $ 15,000 $ 21,600 Apr-12 Accounts Payable Cash (being cash paid) $ 21,600 $ 72,000 Apr-25 Accounts Receivable (800*90) Sales Revenue (being credit sales made) $ 72,000 $ 12,400 Apr-25 Cost of goods sold Merchandise Inventory (400*15+400* 16) (being cost of goods sold recorded) $ 12,400 $ 4,000 May-01 Sales return & allowances Accounts Receivable (being discount iven for damaged goods) $ 4,000 $ 66,640 $ 1,360 May-08 Cash Discount allowed (68000*2%) Accounts Receivable (72000-4000) (being cash received and discount given) $ 68,000 $ 10,000 May-15 Miscellaneous Expenses Cash |(being expenses paid) $ 10,000 $ 30,000 May-27 Merchandise Inventory (1500*20) Accounts Payable (being inventory purchased) $ 30,000 $ 17,000 Jun-03 Cash Accounts receivable (being opening receivables now realised) $ 17,000 $ 6,000 Jun-27 Advertising expenses Cash (being expenses paid) $ 6,000 $ 30,000 Jul-03 Accounts Payable Cash (being cash paid) $ 30,000 $ 1,47,200 Jul-10 Accounts Receivable (1600*92) Sales Revenue (being credit sales made) $ 1,47,200 $ 27,600 Jul-10 Cost of goods sold Merchandise Inventory (600*16+1000*18) (being cost of goods sold recorded) $ 27,600 $ 5,000 Jul-17 Office Supplies Accounts Payable (being office supplies purchased) $ 5,000 5,000 Jul-27 Accounts Payable $ Cash (being cash paid for office supplies purchase) $ 5,000 $ 1,47,200 Aug-09 Cash Accounts receivable (being cash received) $1,47,200 $ 20,000 Aug-24 Accounts Payable cash (being outstanding payable now paid) $ 20,000 $ 20,700 Aug-27 Merchandise Inventory (900*23) Accounts Payable (being inventory purchased) $ 20,700 $ 46,000 Sep-01 Accounts Receivable (500*92) Sales Revenue (being credit sales made) $ 46,000 $ 9,600 Sep-01 Cost of goods sold Merchandise Inventory (300*20+200*18) (being cost of goods sold recorded) $ 9,600 IS 20,700 Sep-12 Accounts Payable cash (being cash paid) $ 20,700 $ 50,000 Sep-30 Short term Investment Cash (being investmensts purchased) $ 50,000 $ 69,750 Oct-04 Accounts Receivable (750*93) Sales Revenue (being credit sales made) $ 69,750 S 15,000 Oct-04 Cost of goods sold Merchandise Inventory (750*20) (being cost of goods sold recorded) $ 15,000 | $ 68,355 $ 1,395 Oct-15 Cash Discount allowed (69750*2%) Accounts receivable (being cash received & discount given) $ 69,750 Oct-31 Cash $ 12,000 Unearned revenue $ 12,000 (being advance money received against service to be provided) $ 25,000 Nov-09 Merchandise Inventory (1000*25) Accounts Payable (being inventory purchased) $ 25,000 $ 4,000 Nov-19 Office supplies Cash (being supplies purchased) $ 4,000 $ 3,000 Nov-27 Miscellaneous expenses cash (being expenses paid) $ 3,000 S 25,000 Dec-04 Accounts Payable cash (being cash paid) $ 25,000 $ 15,600 Dec-12 Merchandise Inventory (600*26) Accounts Payable (being inventory purchased) $ 15,600 $ 95,000 Dec-16 Accounts Receivable (1000*95) Sales Revenue (being credit sales made) $ 95,000 $ 21,650 Dec-16 Cost of goods sold Merchandise Inventory (450*20+550*23) (being cost of goods sold recorded) $ 21,650 $ 80,000 Dec-29 Accounts Receivable Sales Revenue (being services provided) $ 80,000 $ 15,000 Dec-31 Retained Eamings Dividend payable (being dividend declared) $ 15,000 500 Dec-31 Office Supplies Cash (being office supplies purchased) $ 500 # of Units Cost per Unit total Cost 1/1 Beginning Inventory 2,000 $ 15 $ 30,000 1/12 Purchase $? 3/24 Purchase 0 5/27 Purchase $? 8/27 Purchase $? 11/9 Purchase $? 12/12 Purchase $ ? Totals 2,000 $ 30,000 # of Units 1/21 Sale 378 Sale 4/25 Sale 7/10 Sale 9/1 Sale 10/4 Sale 12/16 Sale ? Total units sold ? I TOT CETUI " " 1111111111111 112 113 114 115 116 17 - - (cost of goods sold using Perpetual LIFO) Date of Sale units Sold Coster Per Unit: Total Cost 1/21 1/21 3/8 4/25 7/10 7/10 9/1 1014 10/4 10/4 12/16 12/16 Total COGS Updated Inventory Totals (after sales) # of Units Cost per Unit Total Cost 1/1 Beginning Inventory 2,000 $ 15 $ 30,000 1/12 Purchase A 3/24 Purchase A 5/27 Purchase A 8/27 Purchase A 11/9 Purchase A 12/12 Purchase A Totals 2,000 $ 30,000