Question
ABC Unadjusted trial Balance December 31, 2017 Dr. Cr. Cash $125,600 Investments Accounts receivable, 12/31/16 300,000 116,200 Allowance for doubtful accounts, 12/31/16 $20,000 Inventory, 12/31/16
ABC | ||||
Unadjusted trial Balance | ||||
December 31, 2017 | ||||
Dr. | Cr. | |||
Cash | $125,600 | |||
Investments Accounts receivable, 12/31/16 | 300,000 116,200 | |||
Allowance for doubtful accounts, 12/31/16 | $20,000 | |||
Inventory, 12/31/16 | 62,000 | |||
Furniture and Fixtures | 118,200 | |||
Accumulated depreciation, Furniture & Fixtures 12/31/16 | 32,400 | |||
Accounts payable, 12/31/16 | 42,000 | |||
Capital stock, $10 par value | 50,000 | |||
Retained earnings, 12/31/16 | 242,000 | |||
Sales | 1,549,100 | |||
Notes payable 4%, due 3/31/18 | 200,000 | |||
Purchases | 906,600 | |||
Fencing expense | 80,000 | |||
Salaries expense | 262,000 | |||
Income tax expense | 45,000 | |||
Interest expense | 6,000 | |||
Insurance expense | 34,100 | |||
Rent expense | 34,200 | |||
Utilities expense | 12,600 | |||
Freight in | 15,000 | |||
Freight out | 17,000 | |||
Travel expense | 13,000 | |||
|
| |||
TOTALS | $2,141,500 | $2,141,500 |
. The note payable was taken out on 4/1/2016. A proper accrual was made at 12/31/16 and the entry was reversed at 1/2/2017. All principal and interest are due at maturity. What is the adjusting entry?
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