could you please check my homework? especially #2
Upload a copy of ALL PAGES of the Financial Statement HW to the D2L dropbox. You must handwrite (not type) the assignment. Insert image of your assigned unadjusted Trial Balance HERE: 1,500 42,000 53,000 14,000 2,000 70,000 106,000 2,500 David, Inc. December 31, 2017 Unadjusted Trial balance Cash 100,000 Accounts Receivable 65,000 Allowance for Doubtful Accounts Short Term Note Receivable 40,000 Interest Receivable o Supplies 5,000 Prepaid Insurance 48,000 Inventory 12,000 Vehicle 16,000 Equipment 75,000 Accurnulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends 3,000 Sales Sales Returns & Allowances 7,000 Sales Discounts 3,000 Cost of Goods Sold 46,000 Delivery Expense 5,000 Depreciation Expense 16,000 Bad Debt Expense 0 Rent Expense 98,000 Insurance Expense 40,000 Wages Expense 195,000 Supplies Expense 15,500 Interest Revenue Loss on Disposal 0 Interest Expense 6,500 Income Tax Expense 36,000 Total 832,000 541,000 832,000 Part 1a: Prepare adjusting journal entries using the unadjusted trial balance on the previous page and the information provided below. Use only the account names provided on the previous page (do not create any new account names). 1. On Dec 31, 2017 merchandise was sold on account for $16,500 with a cost of $5,500 terms 3/10 net 30. 12 1 31.17 Accounts Recenade 18.500 Sales Revenue Cost of Goods Sold 5,500 16.500 5,500 Inventory 1,200 1,200 1600 1600 1.0 1.500 2. The company received a 6 month, 12% interest note short-term note for the amount listed on the unadjusted trial balance on Oct. 1, 2017. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required for its finangal statements as of Dec. 31, 2017. 40.000 12/31/17 Interest Recervable 1,200 interest Revenue 40,000 X - 12 x 3/12 3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 1,200 2017 12134117 AFOA Accounts Receivable) 4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account! AFDA Bad Debt Expense 2,100 AFDA 2,100 12,100 5. A piece of equipment was retired on Dec. 31. 2017. The equipment originally cost $34,000 pode = 0 2.00 and has related A/D of $24,000 as of Jan. 1. 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec 31, 2017. Update the depreciation below (#5). Then record the retirement (#6) Depreciation Experee 3,000 Accumulated Depreciation 3.000 6. Record the retirement of the equipment (from #5) including the gain or loss. Accumulated Deprecration 27.000 Loss on Retirement 7,000 Equipment 34,000 NGV = 34,000 27,000 - 7,000 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L Part 1b: Post the adjusting journal entries to t-accounts: (Specific instructions: Above each T-account, write the account name of each account affected by a Journal entry. Write in the unadjusted balance for each of these accounts (from page 1)...the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 2 onto the corresponding T-accounts and then calculate adjusted balances.) Accounts Reservalde 65,000 16,500 1,600 79.900 Interest Pec. 1200 1,200 Laverato 12,000 5,500 6,500 Equipment AFDA 1.500 1,600 2,100 2,000 Accumulated Deor. 42,000 27,000 3,000 18,000 75,000 34,000 41,000 Sales Revenue 541,000 16,500 557,500 Interest Revenue 1,200 COGS 46,000 5,500 51,500 1,200 Bad Debt Excene Depreciatron Exp Loos on Retirement 16,000 2,100 O 3,000 7,000 2,100 19,000 7,000 Part 1c: Prepare the Adjusted Trial Balance (i.e., use ending balances after the previous journal entries are posted) December 31, 2017 Adjusted Trial balance Debit Credit Cash 100,000 Accounts Receivable 79,900 Allowance for Doubtful Accounts 2,000 Short Term Note Receivable 40,000 Interest Receivable 1,200 Supplies 5,000 Prepaid Insurance 48,000 Inventory 60,500 Vehicle IL, 000 Equipment 41,000 Accumulated Depreciation 18,000 Accounts Payable 53,000 Unearned Revenue 14,000 Wages Payable 2,000 Long-Term Notes Payable 70,000 Common Stock lol Retained Earnings (1/1/2017) 2.500 Dividends 3,000 Sales 557,500 Sales Returns & Allowances 7.000 Sales Discounts 3,000 Cost of Goods Sold 51,500 Delivery Expense 5,000 Depreciation Expense 19,000 Bad Debt Expense 2.100 Rent Expense 98,000 Insurance Expense 40.000 Wages Expense 195.000 Supplies Expense 15.500 Interest Revenue Loss on Disposal 7.000 Interest Expense 60.500 Income Tax Expense 36.000 Total 826, 2008,26,200 1200
