Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: Robert L. Mathis, John H. Jackson

13th Edition

053845315X, 978-0538453158

More Books

Students also viewed these Accounting questions