22. The Dewey Corporation's preliminary trial balance (before month-end adjusting entries) on June 30 is shown below. PRELIMINARY TRIAL BALANCE (JUNE 30) Credit Debit $ 600 Cash Short-term Investments 7,000 9,300 Accounts Receivable $ 450 Allowance for Doubtful Accounts Inventories Allowance for Obsolescence 11,200 710 Prepaid Expenses Fixed Assets, Net Accounts Payable Salaries and Wages Payable Vacation and Sick Leave Wages Payable Interest Payable Bank Loans Payable Other Accrued Liabilities 2,300 22,500 4,900 1,500 2,100 300 6,000 1,000 5,000 3,000 32,270 Long-term Debt Capital Stock Retained Earnings Sales Cost of Goods Sold Purchases Salaries and Wages Expense Rent and Other Occupancy Expenses Bad-debt Expense Utilities Expense Insurance Expense Miscellaneous Expenses Interest Expense Interest Income Cash Discounts Earned 37,000 27,000 9,800 1,850 880 600 1,500 300 Total $94,530 $94,530 9. Because some employees left the company before taking vacation leave, the Vacation and Sickness Leave Wages Payable account is overaccrued by $200 h. Dewey needs to add $450 to its Allowance for Doubtful Accounts in light of the $37,000 credit sales during the month. e. In reviewing the detail of its outstanding customer receivables, Dewey determines that $250 is due from a customer who has gone out of business and is therefore unlikely to pay. d. Inventories increased by $1,300 from the beginning to the end of June. e. Dewey earned $300 on its short-term investments during the month, with payment to be received in August. f. Dewey paid $1,500 in bank interest during June; however, only one- third of this amount is an appropriate expense of June, the balance being interest prepayments for July and August. g. Dewey has not yet received the invoice for, nor paid, the $1,000 rent for the month of June. h. Included in the Prepaid Expenses account is $1,400 of prepaid insur- ance for the seven months of June through the end of the calendar year. i. Dewey's accountant determined that the company's fixed assets have declined in value by $600 during the month of June. j. After the month-end inventory was counted and valued, the accountant discovered $100 of inventory that is cbsolete andust be scrapped. k. In the course of negotiations with a supplier who provided services to Dewey in April, the supplier agreed to reduce his bili (not yei paid by Dewey) by $300. Dewey expects to pay the reduced balance next month. I. Because of good operating results in the period January through June, Dewey's president has decided to pay employee bonuses totaling $1,200, with pay ment to be made in early July. 22. The Dewey Corporation's preliminary trial balance (before month-end adjusting entries) on June 30 is shown below. PRELIMINARY TRIAL BALANCE (JUNE 30) Credit Debit $ 600 Cash Short-term Investments 7,000 9,300 Accounts Receivable $ 450 Allowance for Doubtful Accounts Inventories Allowance for Obsolescence 11,200 710 Prepaid Expenses Fixed Assets, Net Accounts Payable Salaries and Wages Payable Vacation and Sick Leave Wages Payable Interest Payable Bank Loans Payable Other Accrued Liabilities 2,300 22,500 4,900 1,500 2,100 300 6,000 1,000 5,000 3,000 32,270 Long-term Debt Capital Stock Retained Earnings Sales Cost of Goods Sold Purchases Salaries and Wages Expense Rent and Other Occupancy Expenses Bad-debt Expense Utilities Expense Insurance Expense Miscellaneous Expenses Interest Expense Interest Income Cash Discounts Earned 37,000 27,000 9,800 1,850 880 600 1,500 300 Total $94,530 $94,530 9. Because some employees left the company before taking vacation leave, the Vacation and Sickness Leave Wages Payable account is overaccrued by $200 h. Dewey needs to add $450 to its Allowance for Doubtful Accounts in light of the $37,000 credit sales during the month. e. In reviewing the detail of its outstanding customer receivables, Dewey determines that $250 is due from a customer who has gone out of business and is therefore unlikely to pay. d. Inventories increased by $1,300 from the beginning to the end of June. e. Dewey earned $300 on its short-term investments during the month, with payment to be received in August. f. Dewey paid $1,500 in bank interest during June; however, only one- third of this amount is an appropriate expense of June, the balance being interest prepayments for July and August. g. Dewey has not yet received the invoice for, nor paid, the $1,000 rent for the month of June. h. Included in the Prepaid Expenses account is $1,400 of prepaid insur- ance for the seven months of June through the end of the calendar year. i. Dewey's accountant determined that the company's fixed assets have declined in value by $600 during the month of June. j. After the month-end inventory was counted and valued, the accountant discovered $100 of inventory that is cbsolete andust be scrapped. k. In the course of negotiations with a supplier who provided services to Dewey in April, the supplier agreed to reduce his bili (not yei paid by Dewey) by $300. Dewey expects to pay the reduced balance next month. I. Because of good operating results in the period January through June, Dewey's president has decided to pay employee bonuses totaling $1,200, with pay ment to be made in early July