ANSWER OF FIRST ONE: (prepare the adjusting entries: 
OTHER QUESTIONS ARE BELOW: (QUESTION 2 does not need to be solved). - ONLY 3,4,5,6,7
The trial balance of Lansbury Inc. contained the following accounts at December 31, 2020, the end of the company's fiscal year. Lansbury Inc. Trial Balance December 31, 2020 Debit Credit Cash $52,700 Accounts Receivable 36,400 Allowance for Doubtful Accounts $ 1,700 Notes Receivable 12,500 Merchandise Inventory 45,000 Store Supplies 5,500 Prepaid Insurance 8,200 Store Equipment 85,000 Accumulated Depreciation - Store Equipment 18,000 Delivery Equipment 48,000 Accumulated Depreciation Delivery Equipment 6,000 Notes Payable 66,200 Accounts Payable 48,500 Share Capital - Ordinary 90,000 Retained Earnings 40,600 Dividends 24,300 Sales 779,000 Sales Returns and Allowances 4,200 Cost of Goods Sold 495,000 Salaries Expense 140,000 Advertising Expense 26,400 Utilities Expense 14,000 Repair Expense 12,100 Delivery Expense 16,700 Rent Expense 24,000 Totals $1,050,000 $1,050,000 Activate V Go to Setting Instructions 1- Prepare the adjusting entries for these accounts: - Store supplies (Supplies expense - Accumulated Depreciation - Store Equipment - Accumulated Depreciation - Delivery Equipment - Allowance for doubtful accounts (Bad debt expense) - Note receivable (Interest revenue) - Note payable (Interest payable) - Salaries expense - Insurance Expense - COGS You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in consistency with your trial balance. Example The trial balance is showing the following balance for "Store Supplies": Cr Dr 5,500 Store Supplies Your assumption could be formulated as follows: 1- Store Supplies: An inventory count at the end of the year reveals that $1,800 of supplies are still on hand. So the cost of supplies used = 5,500-1,800=3,700 Adjusting entry for supplies: Dr: Supplies Expense 3,700 Cr: Store Supplies Activate Go to Sett 3,700 Debit Credit 3,700 3,700 8,500 8,500 12,000 12,000 364 364 1,500 1 Title 2 December 31, 2020 3 1- Supplies expense (5,500-1,800) 4 Store supplies 5 6 3- Depreciation expense 7 Accumulated Depreciation - Store Equipment 8 9 3- Depreciation expense 10 Accumulated Depreciation - Delivery Equipment 11 12 4- Bad debt expense 13 Allowance for doubtful accounts 14 15 Interest receivable ( 12,500*0.12) 16 Interest revenue 17 18 6- Note Payable (66,200*0.05) 19 Interest Expense 20 Interest Payable 21 22 7-Salaries Expense 23 Salaries Payable 24 25 8- Insurance Expense 26 Prepaid Insurance 27 28 9- Cost of goods sold 29 Merchandise Inventory 30 31 1,500 3,310 3,310 4,000 4,000 7,516.67 7,516.67 1,000 1,000 22 The trial balance of Lansbury Inc. contained the following accounts at December 31, 2020, the end of the company's fiscal year. Lansbury Inc. Trial Balance December 31, 2020 Debit Credit Cash $52,700 Accounts Receivable 36,400 Allowance for Doubtful Accounts $ 1,700 Notes Receivable 12,500 Merchandise Inventory 45,000 Store Supplies 5,500 Prepaid Insurance 8,200 Store Equipment 85,000 Accumulated Depreciation - Store Equipment 18,000 Delivery Equipment 48,000 Accumulated Depreciation Delivery Equipment 6,000 Notes Payable 66,200 Accounts Payable 48,500 Share Capital - Ordinary 90,000 Retained Earnings 40,600 Dividends 24,300 Sales 779,000 Sales Returns and Allowances 4,200 Cost of Goods Sold 495,000 Salaries Expense 140,000 Advertising Expense 26,400 Utilities Expense 14,000 Repair Expense 12,100 Delivery Expense 16,700 Rent Expense 24,000 Totals $1,050,000 $1,050,000 Activate V Go to Setting Instructions 1- Prepare the adjusting entries for these accounts: - Store supplies (Supplies expense - Accumulated Depreciation - Store Equipment - Accumulated Depreciation - Delivery Equipment - Allowance for doubtful accounts (Bad debt expense) - Note receivable (Interest revenue) - Note payable (Interest payable) - Salaries expense - Insurance Expense - COGS You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in consistency with your trial balance. Example The trial balance is showing the following balance for "Store Supplies": Cr Dr 5,500 Store Supplies Your assumption could be formulated as follows: 1- Store Supplies: An inventory count at the end of the year reveals that $1,800 of supplies are still on hand. So the cost of supplies used = 5,500-1,800=3,700 Adjusting entry for supplies: Dr: Supplies Expense 3,700 Cr: Store Supplies Activate Go to Sett 3,700 Debit Credit 3,700 3,700 8,500 8,500 12,000 12,000 364 364 1,500 1 Title 2 December 31, 2020 3 1- Supplies expense (5,500-1,800) 4 Store supplies 5 6 3- Depreciation expense 7 Accumulated Depreciation - Store Equipment 8 9 3- Depreciation expense 10 Accumulated Depreciation - Delivery Equipment 11 12 4- Bad debt expense 13 Allowance for doubtful accounts 14 15 Interest receivable ( 12,500*0.12) 16 Interest revenue 17 18 6- Note Payable (66,200*0.05) 19 Interest Expense 20 Interest Payable 21 22 7-Salaries Expense 23 Salaries Payable 24 25 8- Insurance Expense 26 Prepaid Insurance 27 28 9- Cost of goods sold 29 Merchandise Inventory 30 31 1,500 3,310 3,310 4,000 4,000 7,516.67 7,516.67 1,000 1,000 22
