1,500 Francis Company, Inc. December 31, 2017 Unadjusted Trial balance Cash 45,000 Accounts Receivable 23,000 Allowance for Doubtful Accounts Short Term Note Receivable 84,000 Interest Receivable 0 Supplies 5,000 Prepaid Insurance 40,000 Inventory 12,000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends 3,000 Sales Sales Returns & Allowances 2,300 Sales Discounts 1,900 Cost of Goods Sold 45,500 Delivery Expense 2,000 Depreciation Expense 16,000 Bad Debt Expense Rent Expense 98,300 Insurance Expense 40,000 Wages Expense 200,000 Supplies Expense 15,500 Interest Revenue Loss on Disposal Interest Expense 6,500 Income Tax Expense 36,000 Total 767,000 42,000 14,000 18,000 7.000 65,000 106,000 2,500 511,000 O 767,000 1. On Dec. 31, 2017 merchandise was sold on account for $16,500 with a cost of $5,500 terms 3/10 net 30. Accounts receivable 16500 Sales 16500 5500 Cost of goods sold Inventory 5500 2. The company issued a 6 month, 12% interest note short-term note for the amount listed on the unadjusted trial balance on Oct. 1, 2017. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required for its financial statements as of Dec. 31, 2017. Interest receivable 2520 Interest revenue 2520 3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended + 2017. Allowance for Doubtful Accounts 1600 Accounts Receivable 1600 4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account! Bad debts expense 2,100 Allowance for doubtful 2,100 5. A piece of equipment was retired on Dec. 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of Jan. 1, 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec. 31, 2017. Update the depreciation below (#5). Then record the retirement (#6). Depreciation Expense 3,000 Accumulated Depreciation 3,000 6. Record the retirement of the equipment (from #5) including the gain or loss. Accumulated Depreciation 27,000 Loss on Disposal 7,000 Equipment 34,000 Credit ($) 2.000 Adjusted Trail Balance December 31, 2017 Particulars Debit ($) Cash 45,000 Accounts receivable 37,900 Allowance for Doubtful Accounts Short term notes receivable 84,000 Interest receivable Supplies 5,000 Prepaid insurance 40,000 Inventory 6,500 Vehicle 16,000 Equiment 41,000 Accumulated Depreciation Accounts payable Unearned revenue Wages payable Long-term Notes payable Common stock Retained earnings Dividends Sales Sales return and allowance 2,300 Sales discount 1.900 Cost of goods sold 51,000 Delivery expenses 2.000 Depreciation Expense 19,000 Bad debts expense 2.100 Rent expense 98.300 Insurance expense 40,000 Wages expense 200,000 Supplies expense 15,500 Interest revenue Loss on Disposal 7,000 Interest expense 8.450 Income tax expense 36.000 Interest payable 18.000 14,000 18,000 7,000 65,000 106,000 2,500 3.000 527.500 1,950 Total 761,950 761,950 Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjusting journal entry based on this information. In Blank [1] enter the account to be debited. In Blank [2] enter the amount to be debited. In Blank [3] enter the account to be credited. In Blank [4] enter the amount to be credited. ------------ Dr. [1] [2]$_ Cr. [3]_______________ [4]$ ___-------- A/ A piece of equipment was retired on Dec. 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of Jan. 1, 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec. 31, 2017. Update the depreciation below (#5). In Blank [1] enter the account to be debited. In Blank [2] enter the amount to be debited. In Blank [3] enter the account to be credited. In Blank [4] enter the amount to be credited. Dr. [1] ------------ [2]$_ Cr. [3]________________ [4]$____ A Record the retirement of the equipment (from #5) including the gain or loss. In Blank [1] enter the account to be debited. In Blank [2] enter the amount to be debited. In Blank [3] enter the account to be credited or debited for the gain or loss. In Blank [4] enter the amount to be credited or debited for the gain or loss. In Blank [5] enter the account to be credited. In Blank [6] enter the amount to be credited. What is the total dollar amount of debits in the Adjusted Trial Balance? (This number should be the same as the total dollar amount of credits.)