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 ADJUSTMENTS INCOME STATEMENT DEBIT CREDIT BALANCE SHEET DEBIT CREDIT ACCOUNT NAME DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Prepaid Advertising Store Equipment Accumulated Deprec. - Store Equip. Accounts Payable Wages Payable Sales Tax Payable T. Lashay, Capital T. Lashay, Drawing Sales Sales Returns and Allowances Sales Discounts Purchases Purchases Returns and Allowances Purchases Discounts Freight In Rent Expense Advertising Expense Depreciation Expense-Store Equip. Janitorial Services Expense Wages Expense Phone Expense Utilities Expense TRIAL BALANCE DEBIT CREDIT 66,696.00 7,284.50 23,235.00 5,150.00 8,400.00 4,800.00 83,000.00 7,050.00 9,820.00 4,084.00 19,658.50 137,491.00 4,200.00 37,370.00 502.00 98.00 3,863.00 147.00 140.00 375.00 2,400.00 850.00 798.00 650.00 2,419.00 480.00 560.00 215,760.50 215,760.50 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Net Income 36 37 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 ADJUSTMENTS INCOME STATEMENT DEBIT CREDIT BALANCE SHEET DEBIT CREDIT ACCOUNT NAME DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Prepaid Advertising Store Equipment Accumulated Deprec. - Store Equip. Accounts Payable Wages Payable Sales Tax Payable T. Lashay, Capital T. Lashay, Drawing Sales Sales Returns and Allowances Sales Discounts Purchases Purchases Returns and Allowances Purchases Discounts Freight In Rent Expense Advertising Expense Depreciation Expense-Store Equip. Janitorial Services Expense Wages Expense Phone Expense Utilities Expense TRIAL BALANCE DEBIT CREDIT 66,696.00 7,284.50 23,235.00 5,150.00 8,400.00 4,800.00 83,000.00 7,050.00 9,820.00 4,084.00 19,658.50 137,491.00 4,200.00 37,370.00 502.00 98.00 3,863.00 147.00 140.00 375.00 2,400.00 850.00 798.00 650.00 2,419.00 480.00 560.00 215,760.50 215,760.50 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Net Income 36 37
