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Cash 800 Accounts Receivable 700 Allowance for Doubtful Acc, 20 Inventory 500 Supplies 200 Equipment 6,600 Accum. Dep.: Equipment 2,000 Accounts Payable 600 Notes Payable
| Cash | 800 | |
| Accounts Receivable | 700 | |
| Allowance for Doubtful Acc, | 20 | |
| Inventory | 500 | |
| Supplies | 200 | |
| Equipment | 6,600 | |
| Accum. Dep.: Equipment | 2,000 | |
| Accounts Payable | 600 | |
| Notes Payable | 1,000 | |
| Common Stock | 2,200 | |
| Retained. Earnings | 1,380 | |
| Dividends | 900 | |
| Sales Revenue | 7,000 | |
| Cost of Goods Sold | 3,200 | |
| Salaries Expense | 1,000 | |
| Sales Comm. Expense | 300 | |
| Totals | 14,200 | 14,200 |
| INSTRUCTIONS | ||||||||||
| A | Enter the adjustments onto the worksheet and complete the worksheet. | |||||||||
| B | Prepare the CLOSING JOURNAL ENTRIES for the period. | |||||||||
| ADJUSTMENT DATA | ||||||||||
| 1 | Pumpkin Company estimates that 6% of gross accounts receivable will be uncollectible. | |||||||||
| 2 | Depreciation is calculated using the straight-line method, with a 5 year life and $300 salvage value. | |||||||||
| 3 | Sales commissions are 10% of sales. Commissions on sales during the last week of December | |||||||||
| have not been paid as of December 31. | ||||||||||
| 4 | The note was issued on October 1, bearing interest at 10%, due February 1, 2021. | |||||||||
| 5 | A physical inventory of supplies indicated $70 of supplies still on hand. | |||||||||
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