Question
Beautiful by design, INc. is a full-service Nursery/landscaping company offering design services, plants, shrubs, and trees, and installation . Below is a listing of all
Beautiful by design, INc. is a full-service Nursery/landscaping company offering design services, plants, shrubs, and trees, and installation . Below is a listing of all accounts and balances as of december 1.
Account Names | Amount | ||||||||||||||||||||
Cash | 7,500,000 | ||||||||||||||||||||
Accounts Receivable | 2,800,000 | ||||||||||||||||||||
Allowance for Doubtful Accounts (credit balance) | (50,000) | ||||||||||||||||||||
Inventory | 3,000,000 | ||||||||||||||||||||
Prepaid Supplies | 293,750 | ||||||||||||||||||||
Assets Held-for-Sale | 1,500,000 | ||||||||||||||||||||
Land | 12,500,000 | ||||||||||||||||||||
Buildings | 6,975,000 | ||||||||||||||||||||
Accumulated Depreciation-Buildings | (1,743,750) | ||||||||||||||||||||
Equipment | 9,300,000 | ||||||||||||||||||||
Accumulated Depreciation-Equipment | (4,650,000) | ||||||||||||||||||||
Accounts Payable | 1,400,000 | ||||||||||||||||||||
Interest Payable | 100,000 | ||||||||||||||||||||
Unearned Design Revenue | 800,000 | ||||||||||||||||||||
Bonds Payable | 5,000,000 | ||||||||||||||||||||
Common Stock ($10 par) | 10,000,000 | ||||||||||||||||||||
Retained Earnings | 13,837,500 | ||||||||||||||||||||
Sales Revenue | 14,250,000 | ||||||||||||||||||||
Design Revenue | 3,950,000 | ||||||||||||||||||||
Cost of Goods Sold | 4,562,500 | ||||||||||||||||||||
Sales Commissions | 2,000,000 | ||||||||||||||||||||
Advertising Expense | 750,000 | ||||||||||||||||||||
Rent Expense | 1,000,000 | ||||||||||||||||||||
Wages Expense | 2,500,000 | ||||||||||||||||||||
Supplies Expense | 500,000 | ||||||||||||||||||||
Interest Expense | 200,000 | ||||||||||||||||||||
Loss on Income from Discontinued Operations | 400,000 Journalize the following year end adjusting entries. Record the journal entries using proper formatting. *Update all account balances based on the journal entries prepared in the previous section prior to starting this section of the problem.
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