can you calculate the adjusting entries
Adjusting entries are recorded at the end of the accounting period. Une the following information to prepare adjusting entries. Note: You must provide supporting documentation for all calculations in a neat, logical manner. Regardless, all adjusting entries must include an explanation when they are recorded in the general journal. 1. 1 Payroll for December (payment date will be January 10, 2019): Salaries & Wages Expense $22,500 FICA taxes withheld from employees (2,630) Federal and State taxes withheld from employees(3,471) Union dues withheld from employees (180) Salaries & Wages Payable $16,219 Notes: Union dues, income taxes withheld, and FICA taxes withheld are remitted to the appropriate agent or governmental unit on the 20th of the following month. Employees are paid on the 10th of the month following the month of work. 2. 2. Based on past experience as well as a review of the current accounts receivable detail, the credit department has determined that the following collectability estimates are reasonable and should be used to adjust the Allowance for Doubtful Accounts at 12/31/18: Invoice classification By month of sale Estimated % Uncollectible December, 2018 2% November 2018 7% October 2018 30% Prior to October 2018 50% The new revenue recognition principle requires the company to estimate the remaining expected sales returns at end of each year. Based on past experience, the company estimates no remaining expected returns to cash sales, but 3% of accounts recelvables at 12/31/18 (due to credit sales) is expected to be eventually returned. 3 3. 4. A physical count of store supplies shows the amount of $7,002 on hand at 12/31/2018. 5. The 12/31/18 balance in the prepaid insurance account is composed of the following policies: Coverage Period 1/1/18-12/31/19 4/1/18-9/30/19 1/1/19-6/30/19 Amount $8,368 3,600 1,800 Page of 2 - ZOOM + 6. Building, equipment, and delivery trucks are depreciated using the straight-line method. Depreciation on additions and disposals is calculated to the nearest whole month: 12/31/18 Salvage Estimated Cost Value Life Building $476,895 $40,000 35 yrs Office & Store Equipment 170,941 10 yrs Delivery Trucks 204,132 16,000 12 yrs 7. Employer payroll taxes for December: FICA taxes Unemployment taxes $2,630 846 $3,476 Note: FICA and unemployment taxes are remitted to the appropriate agent or governmental unit on the 20th of the following month. The accrued expense and liability for electricity for December 26 through December 31 is estimated to be $820. 8. 9. 10. Accrue the interest expense for the mortgage payable at December 31. Gone in a Flash has not recorded any interest expense since the principal and interest payment on April 30, 2018 (interest rate on the mortgage payable is 4%). Accrue any investment income that Gone in a Flash is entitled from the 5-year Treasury Note in the Investment Securities-Available for Sale account at 12/31/18 (interest rate on the is 5%, due every September 30).' The ending inventory balance (at 12/31/2018) is $439,570. 11. GONE IN A FLASH UNADJUSTED TRIAL BALANCE 12/31/18 DR CR GONE IN A FLASH ADJUSTMENTS 12/31/18 DR CR GONE IN A FLASH ADJUSTED TRIAL BALANCE 12/31/18 DR CR 2. alc# Accounts 3 100 Cash 4 110 Investment Securities AFS 5 115 Accrued Interest Receivable 6 130 Accounts Recervable 7 131 Allowance for Doubtful Accounts 8 132 Allowance for Sales returns 3 140 Merchandise Inventory 0 150 Prepaid Insurance 11 160 Store Supplies 12 170 Land 13 150 Building 14 181 AD Building 15 182 Office & Store Equipment 15 183 A D. Equipment 12 184 Delivery Tracka 19 135 A D Delivery Trucks 19 200 Accounts Payable 20 210 FICA Taxes Payable 220 Withholder Tages Payable 22 230 Unemployment Taxes Payable 23 240 Union Dues Payable 24 250 Salants & Was Payable 25 260 Accrued Utilities Pavable 26 270 Income Tuns Payable 27 280 Mortar Payable 20 281 Accred Interest Payable 300 Common Stock 30 301 PIC in Excess of Par 31 30 Red Emin XV D E G H A B 260 Accrued Utilities Payable 270 Income Taxes Payable 280 Mortgage Payable 281 Accrued Interest Payable 300 Common Stock 301 PIC Excess of Par 350 Retained Earnings 400 Sales 401 Sales Returns 402 Sales Discounts 490 Interest Revenge 500 Purchases 501 Purchase Returns 502 Purchase Discounts 520 Freitht In 550 Cost of Goods Sold 600 Salaries & Wars Expense 605 Payroll Tax Expense 610 Advertising Experise 620 Repair (Delivery) Expense 630 Store Supplies Expense 610 Ulicies Expense 650 Insurance Expense 660 Depreciation Experte 670 Doubtfal Accounts Experie 799 Miscellaneous Expense 300 Interest Expense $50 Income Tax Expense 900 Income Summary Total GONE IN A FLASH UNADJUSTED TRIAL BALANCE 12/31/18 DR CR 98.324 55,000 0 148.411 916 1,863 441.070 13.768 15.346 285.820 476,895 43.855 170,941 38,664 204.132 22.072 106730 a/c# Accounts 100 Cash 110 Investment Securities--AFS 115 Accrued Interest Receivable 130 Accounts Receivable 131 Allowance for Doubtful Accounts 132 Allowance for Sales returns 140 Merchandise Inventory 150 Prepaid Insurance 160 Store Supplies 170 Land 180 Building 181 A. D. Building 182 Office & Store Equipment 183 A. D. Equipment 184 Delivery Trucks 185 A. D. Delivery Trucks 20 Acroute Dasralla UTB ARAR Schedules + D E 18 19 20 21 22 22,072 106,730 0 0 0 0 23 0 0 0 24 25 26 27 28 29 30 31 32 33 A B 185 A. D. Delivery Trucks 200 Accounts Payable 210 FICA Taxes Payable 220 Withholding Taxes Payable 230 Unemployment Taxes Payable 240 Union Dues Payable 250 Salaries & Wages Payable 260 Accrued Utilities Payable 270 Income Taxes Payable 280 Mortgage Payable 281 Accrued Interest Payable 300 Common Stock 301 PIC in Excess of Par 350 Retained Earnings 400 Sales 401 Sales Returns 402 Sales Discounts 490 Interest Revenue 500 Purchases 501 Purchase Returns Sop Duoluca Diccount + 230.000 0 100,000 1,000,000 67.777 1.824.571 28.734 12.511 34 35 36 1.172.459 37 30 7.359 126 X fe D 7,359 14,376 1,952 0 261,324 38,056 10.886 A B 501 Purchase Returns 502 Purchase Discounts 520 Freight In 550 Cost of Goods Sold 600 Salaries & Wages Expense 605 Payroll Tax Expense 610 Advertising Expense 620 Repair (Delivery) Expense 630 Store Supplies Expense 640 Utilities Expense 650 Insurance Expense 660 Depreciation Expense 670 Doubtful Accounts Expense 799 Miscellaneous Expense 800 Interest Expense 850 Income Tax Expense 900 Income Summary 0 0 20,854 0 0 0 + 0 1.700 0 Total 3,458,183 3,458,183 Adjusting entries are recorded at the end of the accounting period. Une the following information to prepare adjusting entries. Note: You must provide supporting documentation for all calculations in a neat, logical manner. Regardless, all adjusting entries must include an explanation when they are recorded in the general journal. 1. 1 Payroll for December (payment date will be January 10, 2019): Salaries & Wages Expense $22,500 FICA taxes withheld from employees (2,630) Federal and State taxes withheld from employees(3,471) Union dues withheld from employees (180) Salaries & Wages Payable $16,219 Notes: Union dues, income taxes withheld, and FICA taxes withheld are remitted to the appropriate agent or governmental unit on the 20th of the following month. Employees are paid on the 10th of the month following the month of work. 2. 2. Based on past experience as well as a review of the current accounts receivable detail, the credit department has determined that the following collectability estimates are reasonable and should be used to adjust the Allowance for Doubtful Accounts at 12/31/18: Invoice classification By month of sale Estimated % Uncollectible December, 2018 2% November 2018 7% October 2018 30% Prior to October 2018 50% The new revenue recognition principle requires the company to estimate the remaining expected sales returns at end of each year. Based on past experience, the company estimates no remaining expected returns to cash sales, but 3% of accounts recelvables at 12/31/18 (due to credit sales) is expected to be eventually returned. 3 3. 4. A physical count of store supplies shows the amount of $7,002 on hand at 12/31/2018. 5. The 12/31/18 balance in the prepaid insurance account is composed of the following policies: Coverage Period 1/1/18-12/31/19 4/1/18-9/30/19 1/1/19-6/30/19 Amount $8,368 3,600 1,800 Page of 2 - ZOOM + 6. Building, equipment, and delivery trucks are depreciated using the straight-line method. Depreciation on additions and disposals is calculated to the nearest whole month: 12/31/18 Salvage Estimated Cost Value Life Building $476,895 $40,000 35 yrs Office & Store Equipment 170,941 10 yrs Delivery Trucks 204,132 16,000 12 yrs 7. Employer payroll taxes for December: FICA taxes Unemployment taxes $2,630 846 $3,476 Note: FICA and unemployment taxes are remitted to the appropriate agent or governmental unit on the 20th of the following month. The accrued expense and liability for electricity for December 26 through December 31 is estimated to be $820. 8. 9. 10. Accrue the interest expense for the mortgage payable at December 31. Gone in a Flash has not recorded any interest expense since the principal and interest payment on April 30, 2018 (interest rate on the mortgage payable is 4%). Accrue any investment income that Gone in a Flash is entitled from the 5-year Treasury Note in the Investment Securities-Available for Sale account at 12/31/18 (interest rate on the is 5%, due every September 30).' The ending inventory balance (at 12/31/2018) is $439,570. 11. GONE IN A FLASH UNADJUSTED TRIAL BALANCE 12/31/18 DR CR GONE IN A FLASH ADJUSTMENTS 12/31/18 DR CR GONE IN A FLASH ADJUSTED TRIAL BALANCE 12/31/18 DR CR 2. alc# Accounts 3 100 Cash 4 110 Investment Securities AFS 5 115 Accrued Interest Receivable 6 130 Accounts Recervable 7 131 Allowance for Doubtful Accounts 8 132 Allowance for Sales returns 3 140 Merchandise Inventory 0 150 Prepaid Insurance 11 160 Store Supplies 12 170 Land 13 150 Building 14 181 AD Building 15 182 Office & Store Equipment 15 183 A D. Equipment 12 184 Delivery Tracka 19 135 A D Delivery Trucks 19 200 Accounts Payable 20 210 FICA Taxes Payable 220 Withholder Tages Payable 22 230 Unemployment Taxes Payable 23 240 Union Dues Payable 24 250 Salants & Was Payable 25 260 Accrued Utilities Pavable 26 270 Income Tuns Payable 27 280 Mortar Payable 20 281 Accred Interest Payable 300 Common Stock 30 301 PIC in Excess of Par 31 30 Red Emin XV D E G H A B 260 Accrued Utilities Payable 270 Income Taxes Payable 280 Mortgage Payable 281 Accrued Interest Payable 300 Common Stock 301 PIC Excess of Par 350 Retained Earnings 400 Sales 401 Sales Returns 402 Sales Discounts 490 Interest Revenge 500 Purchases 501 Purchase Returns 502 Purchase Discounts 520 Freitht In 550 Cost of Goods Sold 600 Salaries & Wars Expense 605 Payroll Tax Expense 610 Advertising Experise 620 Repair (Delivery) Expense 630 Store Supplies Expense 610 Ulicies Expense 650 Insurance Expense 660 Depreciation Experte 670 Doubtfal Accounts Experie 799 Miscellaneous Expense 300 Interest Expense $50 Income Tax Expense 900 Income Summary Total GONE IN A FLASH UNADJUSTED TRIAL BALANCE 12/31/18 DR CR 98.324 55,000 0 148.411 916 1,863 441.070 13.768 15.346 285.820 476,895 43.855 170,941 38,664 204.132 22.072 106730 a/c# Accounts 100 Cash 110 Investment Securities--AFS 115 Accrued Interest Receivable 130 Accounts Receivable 131 Allowance for Doubtful Accounts 132 Allowance for Sales returns 140 Merchandise Inventory 150 Prepaid Insurance 160 Store Supplies 170 Land 180 Building 181 A. D. Building 182 Office & Store Equipment 183 A. D. Equipment 184 Delivery Trucks 185 A. D. Delivery Trucks 20 Acroute Dasralla UTB ARAR Schedules + D E 18 19 20 21 22 22,072 106,730 0 0 0 0 23 0 0 0 24 25 26 27 28 29 30 31 32 33 A B 185 A. D. Delivery Trucks 200 Accounts Payable 210 FICA Taxes Payable 220 Withholding Taxes Payable 230 Unemployment Taxes Payable 240 Union Dues Payable 250 Salaries & Wages Payable 260 Accrued Utilities Payable 270 Income Taxes Payable 280 Mortgage Payable 281 Accrued Interest Payable 300 Common Stock 301 PIC in Excess of Par 350 Retained Earnings 400 Sales 401 Sales Returns 402 Sales Discounts 490 Interest Revenue 500 Purchases 501 Purchase Returns Sop Duoluca Diccount + 230.000 0 100,000 1,000,000 67.777 1.824.571 28.734 12.511 34 35 36 1.172.459 37 30 7.359 126 X fe D 7,359 14,376 1,952 0 261,324 38,056 10.886 A B 501 Purchase Returns 502 Purchase Discounts 520 Freight In 550 Cost of Goods Sold 600 Salaries & Wages Expense 605 Payroll Tax Expense 610 Advertising Expense 620 Repair (Delivery) Expense 630 Store Supplies Expense 640 Utilities Expense 650 Insurance Expense 660 Depreciation Expense 670 Doubtful Accounts Expense 799 Miscellaneous Expense 800 Interest Expense 850 Income Tax Expense 900 Income Summary 0 0 20,854 0 0 0 + 0 1.700 0 Total 3,458,183 3,458,183
