7/1/2005 HA 4073 ADJUSTING ENTRIES CHP 4-5 HW g NAME: SCORE: ACME Inc. recorded the following trial balance before adjustments as of December 31, 2005. Prepare an adjusted trial balance using the following adjusting statements. 1. Costs of goods sold are determined to be at $48,520 2. Insurance Expense represent purchased on 7/1 for coverage of 2 years 3. The business still owes wages of $4,500 and utilities expense of $1,200. 4. Notes payable was obtained on 9/1 at annual interest rate of 9%. No interest has been paid. 5. The business has not received the annual interest of 11% on Notes Receivable. 6. Both furniture and equipment are to be depreciated using the straight-line method. The combined salvage value for both is $7,270 and both have a useful life of 20 years. BEFORE ADJ. ADJUSTMENTS ACCOUNTS DR. CR. DR. CR. DR. AFTER ADJ. CR. Cash $26,550 Acct Receivable $33,960 Notes Receivable $34,000 Inventory $68,120 Equipment $62,450 Furniture $44,820 Insurance Expense $24,000 Utility Expense $11,200 Wages Expense $33,150 Interest Expense $4,800 Miscellaneous Expense $2,700 Accounts Payable $14,500 Notes Payable $25,000 Loan $35,000 Capital $165,000 Sales $87,500 Accumulated Depreciation. $18,750 TOTAL $345,750 $345,750 500 940 350940 NAME: HA 4073 ADJUSTING ENTRIES CHP 4-6 HW/QZ: 10 SCORE 1. The restaurant determined that costs of goods sold for the period to be at $33,620, 2. ACME restaurant recorded the following trial balance before adjustments as of December 31, 2005. Prepare an adjusted trial balance using the following adjusting statements: The restaurant did not receive any of the interest from notes receivable this year. Annual interest rate on notes receivable was set at 8%. 3. The restaurant still owes $4,200 in wages and $850 in utilities 4. 5. Insurance was purchase on 7/1/2005 for coverage of 18 months Equipment has an estimated salvage value of $5,600 with 20 useful years. Furniture has an estimated salvage value of $11,000 with 20 useful years. Annual depreciation has not been calculated BEFORE ADJ ACCOUNTS ADJUSTMENTS AFTER ADJ. DR. CR. DR. CR. DR CR. Cash $11,780 Accounts Receivable $14,520 Notes Receivable $40,000 Inventory $48,760 Furniture $41,000 Equipment $55,600 Building $224,500 Insurance Expense $12,000 Wages Expense $31,400 Utilities Expense $8,700 Advertising Expense $4,000 Interest Expense $2,400 Miscellaneous Expense $1,200 Account Payable. $16,450 Notes Payable $30,000 $50,000 Loan Capital Sales $270,000 $114,520 Accumulated Depreciation $14,890 TOTAL $495,860 $495,860 508 10 506 110