answer the question
TV /0 13 SCIlly h. The only item appearing on the bank reconciliation is outstanding checks of $18,000 BELLA BEAUTY SALON PARTIAL WORKSHEET DEC 31, 2017 10:27 UNADJUSTED TRIAL BALANCE ADJUSTMENTS & ERROR CORRECTIONS ADJUSTED TRIAL BALANCE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash and Cash Equivalents $ 557,000 $ 72.000 629.000 Accounts Receivable 324,000 $ 72,000 252.000 Allowance for Doubtful Accounts 12,000 e 27.120 5.120 Merchandise Inventory 136,000 d 20,000 156,000 Prepaid Insurance 26.000 16.000 10,000 Other Current Assets 10.000 10,000 Property, Plant, and Equipment (PPE) 890,000 890.000 Accumulated Depreciation - PPE 263,750 57.000 320.750 Accounts Payable 204,000 88,900 292,900 Other Current Liabilities 54,000 a 10 000 64,000 Long-Term Notes Payable 100,000 100.000 Capital, Bella Hanson 821.600 821,600 Withdrawals, Bella Hanson 57.000 57,000 Sales 1,432.000 1,432,000 Cost of Goods Sold 650.000 20.090 630,000 Selling Expenses 198.090 e/g 49 920 247.920 Administrative Expenses 86.000 9 34,200 120 200 General Expenses 13 450 16.000 29 450 Other Expenses 4 800 a 10.000 14.800 TOTAL $ 2,964.250 $ 2.875.350 $ 202.120 $ 291,020 $ 3,046,370 $ 3,046,37024 Bella Beauty Salon has provided you with the following unadjusted trial balance. As you can see, the trial balance is not balanced since the previous accountant made a few errors. Also, adjusting entries have not yet been recorded. Use the additional information given below to complete the partial worksheet given. The first entry has been completed as an example. (10 points) ADDITIONAL INFORMATION: a. Accrued other expenses, which are part of other current liabilities, of $10,000, are not yet recorded. X 01:30:49 b. Cash of $36,000 was received from a customer in payment of accounts receivable balance during the year. The accountant erroneously debited Accounts Receivable and credited Cash. c. Equipment costing $44,450 was purchased on credit on Dec 31, 2016, the last day of the year. While posting the entry, the accountant debited the correct account, Property, Plant, and Equipment (PPE), but erroneously debited accounts payable. d. A Lower of Cost or Market analysis shows the replacement cost of inventory is $156,000 e. Bad debts are estimated as 6% of accounts receivable. Bad debts are classified as a selling expense f. $10,000 of prepaid insurance has not yet expired. The insurance is a General Expense g. Depreciation on the property, plant, and equipment amounting to $57,000 has not yet been recorded. 60% is administrative and 40% is selling h. The only item appearing on the bank reconciliation is outstanding checks of $18,000 BELLA BEAUTY SALON PARTIAL WORKSHEET DEC 31, 2017 UNADJUSTED TRIAL BALANCE ADJUSTMENTS & ERROR CORRECTIONS ADJUSTED TRIAL BALANCE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash and Cash Equivalents S 557.000 S 72 000 629.000 Accounts Receivable 324.000 72.000 252.000 Allowance for Doubtful Accounts 12 000 27 120 15.120 Merchandise Inventory 136.000 20.000 156,000 Prepaid Insurance 26,000 16.000 10 000 Other Current Assets 10 000 10,000 Property. Plant, and Equipment (PPE) 890.000 890.090 Accumulated Depreciation - PPE $ 263,750 57 000 320.750 Accounts Payable 204.000 88 900 292.900 Other Current Liabilities 54.000 10.000 64.000 Long-Term Notes Payable 100 000 100 000 Capital, Bella Hanson 821.600 821.600 Withdrawals, Bella Hanson 57 000 57,000 Sales 1 432 000 Cost of Goods Sold 650 000 20 000 630 000
