Adjusting, Closing, and Reversing Entries A 6-column spreadsheet for Baldwin Company is shown below: Baldwin company End-of-Period Spreadsheet For Year Ended December 31, 20-1 Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit Cash 41,200 41,200 Government Notes 6,000 6,000 (d) 140 140 Interest Receivable Accounts Receivable 32,000 32,000 Allowance for Doubtful Accounts 920 (f) 1.450 2,370 21,000 21,000 Finished Goods Inventory Work in Process Inventory 10,100 (a) 3,600 13,700 9,100 9,100 Materials Inventory Estimated Returns Inventory 75 (c) 645 720 (0) 3,800 500 4,300 5,200 (h) 4,200 1,000 Office Supplies Factory Supplies Prepaid Insurance Land (1) 5,100 1,000 6,100 80,000 120,000 80,000 120,000 Factory Building 20,000 (1) 5,000 25,000 50,000 50,000 Accum. Depreciation-Factory Building Factory Equipment Accum. Depreciation-Factory Equipment Accounts Payable Customer Refunds Payable 8,000 (K) 4,000 12,000 16,400 16,400 120 (b) 1,120 1,240 Calculator Print Item eBook Lam Prepaid Insurance 6,100 (1) 5,100 1,000 80,000 120,000 20,000 (1) 5,000 25,000 Land 80,000 Factory Building 120,000 Accum. Depreciation-Factory Building Factory Equipment 50,000 Accum. Depreciation-Factory Equipment Accounts Payable 50,000 8,000 (k) 4,000 12,000 16,400 16,400 120 (b) 1,120 1,240 Customer Refunds Payable Income Tax Payable (m) 5,900 5,900 Interest Payable (e) 1,200 1,200 90,000 Bonds Payable Capital Stock Paid-In Capital in Excess of Par 90,000 60,000 60,000 40,000 40,000 46,790 Retained Earnings Sales Sales Returns and Allowances 46,790 406,445 406,445 6,400 (b) 1,120 7,520 Interest Revenue 740 Factory Overhead 110,100 110,100 600 (d) 140 91,800 105,200 (h) 4,200 (a) 3,600 (1) 5,100 (1) 1,300 (1) 5,000 (k) 4,000 () 1,300 (c) 645 204,155 203,500 80,000 80,000 3,800 Cost of Goods Sold Salaries Expense Office Supplies Expense Bad Debt Expense Utilities Expense-Office Interest Expense (9) 3,800 ( 1,450 1,450 6,700 6,700 8,000 (e) 1,200 9,200 Bad Debt Expense (0) 1,450 1,450 Utilities Expense-Office 6,700 6,700 Interest Expense 8,000 (e) 1,200 9,200 Income Tax Expense 13,000 (m) 5,900 18,900 794,475 794,475 37,455 37,455 818,185 818,185 441,825 517,285 Net Income 75,460 Data for adjusting the accounts are as follows: (a) Factory overhead to be applied to work in process ending inventory $3,600 (b) Estimate of this year's sales that will be returned next year 1,240 (c) Cost of goods expected to be returned 720 (d) Interest receivable 140 (e) Interest payable 1,200 (f) Estimate of uncollectible accounts, based on an aging of accounts receivable 2,370 (0) Office supplies consumed 3,800 (h) Factory supplies consumed 4,200 (1) Insurance on factory building and equipment expired 5,100 (1) Factory building depreciation 5,000 (k) Factory equipment depreciation 4,000 (U) Underapplied factory overhead 1,300 (m) Provision for corporate income taxes 5,900 Required: 1. Prepare the December 31 adjusting journal entries for Baldwin Company, Page: Previous Check My Work 1. Prepare the December 31 adjusting journal entries for Baldwin Company. Page: DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 2 3 4 5 6 7 9 9 Adjusting Entries Dec. 31 Work in Process Inventory Factory Overhead Apply factory overhead to work in process 5 Dec. 31 Sales Returns and Allowances Customer Refunds Payable Adjust Customer Refunds Payable to current estimate Dec. 31 Estimated Returns Inventory Cost of Goods Sold 10 Adjust Estimated Returns Inventory to current estimate 11 Dec. 31 Interest Receivable 12 Interest Revenue Record interest earned 14 Dec. 31 Interest Expense Interest Payable 16 Record interest expense 17 Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts 19 Adjust estimate of uncollectible accounts 20 Dec 31 Office Supplies Expense 21 office Supplies DO IN OO OO OO DI II I 10 12 13 13 14 15 15 16 17 18 18 19 20 21 Check My Work