Question
Blue Spruce Athletic Wear Inc.s adjusted trial balance amounts (with the exclusion of the adjusting entry to update Inventory and Cost of Goods Sold accounts)
Blue Spruce Athletic Wear Inc.s adjusted trial balance amounts (with the exclusion of the adjusting entry to update Inventory and Cost of Goods Sold accounts) appear in alphabetical order as follows on December 31, 2021, the end of its fiscal year:
Accounts payable | $101,065 | Inventory, Jan. 1 | $49,815 | ||||
Accounts receivable | 54,366 | Land | 92,250 | ||||
Accumulated depreciationbuildings | 63,714 | Mortgage payable | 153,750 | ||||
Accumulated depreciationequipment | 52,767 | Prepaid insurance | 2,952 | ||||
Administrative expenses | 222,507 | Property tax payable | 5,904 | ||||
Buildings | 233,700 | Purchases discounts | 27,675 | ||||
Cash | 20,910 | Purchase returns and allowances | 7,872 | ||||
Common shares | 64,575 | Purchases | 493,968 | ||||
Deferred revenue | 10,209 | Refund liability | 5,084 | ||||
Dividends declared | 9,840 | Retained earnings | 84,378 | ||||
Equipment | 135,300 | Salaries payable | 4,305 | ||||
Freight in | 6,888 | Sales | 783,510 | ||||
Income tax expense | 19,680 | Selling expenses | 9,840 | ||||
Interest expense | 12,792 |
Additional information:
1. | Blue Spruce Athletic Wear uses a periodic inventory system. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | A physical inventory count determined that Inventory on December 31, 2021, was $89,298. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. | Of the mortgage payable, $15,375 is due in the next year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. | Common shares of $30,750 were issued during the year.Blue Spruce Athletic Wear Inc.s adjusted trial balance amounts (with the exclusion of the adjusting entry to update Inventory and Cost of Goods Sold accounts) appear in alphabetical order as follows on December 31, 2021, the end of its fiscal year:
Prepare the adjusting entry required to update the inventory and related accounts at December 31. Update the affected accounts. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If a journal entry is not required, select "No entry required" for each account name and enter 0 as the amount.)
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