C. 1. Complete the Adjustments section of the work sheet using the following information: a. On October 30, an inventory of the supplies showed that items costing $1,730 were used this month. Record an adjustment for the supplies used in October. b. On October 1, 20xx the company purchased a twelve-month insurance policy for $8,400. Record an adjustment for the expired insurance during the month of October. On October 3, the company purchased a six-month advertising contract for $4,800. Record an adjustment for the expired advertising in October. Assume a full month of advertising expired in October. d. The company owns store equipment and purchased it for $83,000. The store equipment has an estimated useful life of 8 years and a salvage value of $8,000. Record depreciation on the store equipment for one month using the 200% declining balance method. e-f. Based on a physical count, ending merchandise inventory was determined to be $21,500. g. Record the estimate for uncollectible accounts using the percent of credit sales method at 2% of credit (on account) sales Horizontal Analysis Express Fashion Comparative Balance Sheet For the Months October 31, 2019 and October 31, 2020 Vertical Analysis Express Fashion Balance Sheet For the Months October 31, 2019 and October 31, 2020 Oct-19 Oct-20 Dollar Dollar Oct-19 Oct-20 Amount Amount Percentage Percentage Assets: Dollar Change Percent Change Oct-19 Oct-20 Assets: $ 38,500.00 4,200.00 (145.00) 11,225.00 750.00 1,100.00 Cash $ 38,500.00 Accounts Receivable 4,200.00 Allowance for Doubtful Accounts (145.00) Merchandise Inventory 11,225.00 Supplies 750.00 Prepaid Insurance 1,100.00 Prepaid Advertising Store Equipment 18,500.00 Accum. Dep. - Store Equipment (3,025.00 Office Equipment 7,525.00 Accum. Dep. - Office Equipment (2,120.00) Total Assets $ 76,510.00 $ Liabilities: Accounts Payable 7,250.00 Sales Tax Payable 1,030.00 Wages Payable 975.00 Total Liabilities $ 9,255.00 $ Owner's Equity: T. Lashay, Capital 67,255.00 Total Liabilities & Owner's Equity $ 76,510.00 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Insurance Prepaid Advertising Store Equipment Accum. Dep. - Store Equipment Office Equipment Accum. Dep. - Office Equipment Total Assets Liabilities: Accounts Payable Sales Tax Payable Wages Payable Total Liabilities Owner's Equity: T. Lashay, Capital Total Liabilities & Owner's Equity 18,500.00 (3,025.00) 7,525.00 (2.120.00) $ 76,510.00 $ 100% 100% 7,250.00 1,030.00 975.00! $ 9,255.00 $ 67.255.00 $ 76,510.00 100% 100%
