Could some one help me with adj trial balance sheet for this prob. all journalizing has been posted as you can see: Question: Comprehensive Problem 11 (Part Level Submission) Morgan Companys balance sheet at December 31, 2016, is presented below. MORGAN COMPANY Balance Sheet December 31, 2016 Cash $31,500 Accounts Payable $12,750 Inventory 30,500 Interest Payable 278 Prepaid Insurance 6,204 Notes Payable 55,500 Equipment 39,300 Owners Capital 38,976 $107,504 $107,504 During January 2017, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $278 interest on the note payable on January 1, 2017. The note is due December 31, 2018. 2. Morgan purchased $242,000 of inventory on account. 3. Morgan sold for $482,000 cash, inventory which cost $266,000. Morgan also collected $31,330 in sales taxes. 4. Morgan paid $226,000 in accounts payable. 5. Morgan paid $15,500 in sales taxes to the state. 6. Paid other operating expenses of $21,000. 7. On January 31, 2017, the payroll for the month consists of salaries and wages of $58,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,500 federal income taxes are withheld. The salaries and wages are paid on February 1. Adjustment data: 8. Interest expense of $278 has been incurred on the notes payable. 9. The insurance for the year 2017 was prepaid on December 31, 2016. 10. The equipment was acquired on December 31, 2016, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value. 11. Employers payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.8% federal unemployment tax. (a) Prepare journal entries for the transactions listed above and the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Comprehensive Problem 11 (Part Level Submission) Morgan Companys balance sheet at December 31, 2016, is presented below. MORGAN COMPANY Balance Sheet December 31, 2016 Cash $31,500 Accounts Payable $12,750 Inventory 30,500 Interest Payable 278 Prepaid Insurance 6,204 Notes Payable 55,500 Equipment 39,300 Owners Capital 38,976 $107,504 $107,504 During January 2017, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $278 interest on the note payable on January 1, 2017. The note is due December 31, 2018. 2. Morgan purchased $242,000 of inventory on account. 3. Morgan sold for $482,000 cash, inventory which cost $266,000. Morgan also collected $31,330 in sales taxes. 4. Morgan paid $226,000 in accounts payable. 5. Morgan paid $15,500 in sales taxes to the state. 6. Paid other operating expenses of $21,000. 7. On January 31, 2017, the payroll for the month consists of salaries and wages of $58,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,500 federal income taxes are withheld. The salaries and wages are paid on February 1. Adjustment data: 8. Interest expense of $278 has been incurred on the notes payable. 9. The insurance for the year 2017 was prepaid on December 31, 2016. 10. The equipment was acquired on December 31, 2016, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value. 11. Employers payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.8% federal unemployment tax. (a) Prepare journal entries for the transactions listed above and the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Comment Expert Answer Diploma Diploma answered this Was this answer helpful? 0 0 5,309 answers Journal Entry Sr No Account Title Dr $ Cr $ 1 Interest Payable 278.00 Cash 278.00 2 Inventory 242,000.00 Accounts Payable 242,000.00 3 Sales Revenue 482,000.00 Sales Tax Payable 31,330.00 Cash 513,330.00 Inventory 266,000.00 Cost Of Goods Sold 266,000.00 4 Accounts Payable 226,000.00 Cash 226,000.00 5 Sales Tax Payable 15,500.00 Cash 15,500.00 6 Cash 21,000.00 Other Operating Expenses 21,000.00 7 Salaries & Wages Expense 58,000.00 FICA Tax Payable 4,437.00 Federal Income Tax Payable 8,500.00 Salaries & Wages Payable 45,063.00 Adjustment Entries 8 Interest Expense 278.00 Interest Payable 278.00 9 Insurance Expenses 517.00 Preapid Insurance 517.00 10 Depreciation Expenses 605.00 Accumulated Depreciation -Equipment 605.00 11 FICA Tax Payable 4,437.00 State Employment Tax payable 3,132.00 Federal Unemployment Tax Payable 464.00 Payroll Tax Expense 8,033.00