ADJUSTMENTS a.-b. Merchandise inventory on December 31, 20X1, is $78,000. c. During 20X1, the firm had net credit sales of $560,000; past experience indicates that 0.5 percent of these sales should result in uncollectible accounts. d. On December 31, 20X1, an inventory of supplies showed that items costing $1,180 were on hand. e. On May 1, 20X1, the firm purchased a one-year insurance policy for $5,400. f. Three years ago the firm purchased office equipment for $8,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $350. g. Three years ago the firm purchased warehouse equipment for $28,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. h. On November 1, 20X1, the firm issued a four-month, 12 percent note for $32,000. i. On December 31, 20X1, the firm owed salaries of $5,000 that will not be paid until 20X2. j. On December 31, 20X1, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,000 of accrued wages. k. On December 31, 20X1, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5,000 of accrued wages. Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1. 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. Complete the worksheet.

ADJUSTMENTS a.-b. Merchandise inventory on December 31, 20X1, is $78,000. c. During 201, the firm had net credit sales of $560,000; past experience indicates that 0.5 percent of these sales should result in uncollectible accounts. d. On December 31,201, an inventory of supplies showed that items costing $1,180 were on hand. e. On May 1, 20X1, the firm purchased a one-year insurance policy for $5,400 f. Three years ago the firm purchased office equipment for $8,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $350. g. Three years ago the firm purchased warehouse equipment for $28,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4.000 h. On November 1,20X1, the firm issued a four-month, 12 percent note for $32,000. i. On December 31, 20X1, the firm owed salaries of $5,000 that wil not be paid until 202 j. On December 31,201, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 145 percent) on the entire $5,000 of accrued wages. k. On December 31,201, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5.000 of accrued wages: Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year encled December 31 . 20x1 2. Enter the adjustments above in the Adjustments section of the worksheet 3. Complete the worksheet