Emmett Company, Inc. December 31, 2017 3DA Unadjusted Trial balance Cash 45,000 Accounts Receivable 30,000 ea cant Allowance for Doubtful Accounts 1000 Short Term Note Receivable 80,000 Interest Receivable Supplies 5,000 Prepaid Insurance Inventory 40,000 12,000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable 42,000 18,000 Unearned Revenue 18,000 Wages Payable Long-Term Notes Payable 7,000 65,000 Common Stock 106,000 Retained Earnings (1/1/2017) Dividends 2,500 3,000 Sales 511,000 Sales Returns & Allowances 7,000 3,000 Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense 45,500 2,000 16,000 0 Rent Expense 98,000 Insurance Expense Wages Expense Supplies Expense 40,000 195,000 15,500 Interest Revenue 0 Loss on Disposal Interest Expense Income Tax Expense 0 6,500 36,000 Total 770,500 770,500 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. ACCOunts Nceivable Sales cost cf geals Sold Inventely I6,S00 le Sod S500 2. The company issued 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 financial statements as of Dec. 31, 2017. AMRST peceivable Lutest revenie 3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 2017. Bal Debt ACCounts eLEvable 600 XPe nse 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! Bal debt ex Pense Allewane for dastfut Arauats aboo 5. A piece of equipment was retired on Dec. 31, 2017. The equipment originally cost $34,000 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). DePeciatian Exkns ACCmula td Deeclae 3000 6. Record the retirement of the equipment (from #5) including the gain or loss. ACCumalakd Defrrcialon 00 7600 3000 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.) 7 acconnts Cast of soods Sold Sales Closing sajsoopans SIelopenng s0osins balance ACcounts receivable OPERIG ba la nce 30,0 Sales 16, S00 Bclance alawiee Acceuas 1GSe ceeivobk balance A, S00 4.g00 S1,000 S1000 46,500 ntrest vevenue Tntnrt ceceivable Inventoy Tntest Mceivble CooEatrse ne 8,1 anee elosmg Bealance So1d alance Pelkace S00 13, 000 aHoo ce Allowance for dowtP ACconats ACcuMalakd deereclatian Alunts irable Cipsing Elnce equiAment Edtmes Balance 300Bad eYPeIse Soo0 Sobr LActumatk deoo exfense 44,000 loss on dispasa lesing 14,p00eart2olosng Balance Bad Debt expen Se pePuciaban ExRene 7,200 receivsbre looobalance alonte bolence Ameince or dotf Attonts Atc 190c0 1400' 000 Credit Debit Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total