Question
Following is theunadjusted trial balance of Ben's Jewelers on December 31, 20X1. BEN'S JEWELERS Trial Balance December 31, 20X1Cash$13,350Dr.Accounts Receivable50,200Dr.Allowance for Doubtful Accounts2,300Cr.Merchandise Inventory106,200Dr.Store Supplies4,530Dr.Office
Following is theunadjusted trial balance of Ben's Jewelers on December 31, 20X1.
BEN'S JEWELERS
Trial Balance
December 31, 20X1Cash$13,350Dr.Accounts Receivable50,200Dr.Allowance for Doubtful Accounts2,300Cr.Merchandise Inventory106,200Dr.Store Supplies4,530Dr.Office Supplies3,250Dr.Store Equipment113,890Dr.Accumulated DepreciationStore Equipment13,310Cr.Office Equipment27,940Dr.Accumulated DepreciationOffice Equipment5,230Cr.Accounts Payable4,690Cr.Salaries PayableSocial Security Tax PayableMedicare Tax PayableFederal Unemployment Tax PayableState Unemployment Tax PayableBen Waites, Capital166,610Cr.Ben Waites, Drawing30,300Dr.Income SummarySales863,430Cr.Sales Returns and Allowances7,880Dr.Purchases505,110Dr.Purchases Returns and Allowances4,540Cr.Purchases Discounts12,270Cr.Freight In7,300Dr.Salaries ExpenseSales76,250Dr.Rent Expense35,800Dr.Advertising Expense12,600Dr.Store Supplies ExpenseDepreciation ExpenseStore EquipmentSalaries ExpenseOffice77,780Dr.Uncollectible Accounts ExpensePayroll Taxes ExpenseOffice Supplies ExpenseDepreciation ExpenseOffice Equipment
Required:
- Complete the worksheet.
- a.-b.Ending merchandise inventory, $99,000.
- Uncollectible accounts expense, $1,300.
- Store supplies on hand December 31, 20X1, $655.
- Office supplies on hand December 31, 20X1, $335.
- Depreciation on store equipment, $11,390.
- Depreciation on office equipment, $3,420.
- Accrued sales salaries, $4,300, and accrued office salaries, $1,300.
- Social security tax on accrued salaries, $338; Medicare tax on accrued salaries, $82. (Assumes that tax rates have increased.)
- Federal unemployment tax on accrued salaries, $62; state unemployment tax on accrued salaries, $282.
- Journalize the adjusting entries on December 31, 20X1.
- Journalize the closing entries on December 31, 20X1.
- Compute the following:
- net sales
- net delivered cost of purchases
- cost of goods sold
- net income or net loss
- balance ofBen Waites, Capitalon December 31, 20X1.
Analyze:
What change(s) toBen Waites, Capitalwill be reported on the statement of owner's equity?
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