Question
GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer. GameStop Corp. sells video game software for PCs. GameStop's unadjusted trial
GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer. GameStop Corp. sells video game software for PCs. GameStop's unadjusted trial balance as of December 31, 2024, appears below. December 31 is the GameStop's reporting year-end. Pleasenote: GameStop uses the perpetual inventory system. Account Title Cash Accounts receivable Debits. $ 33,300 Credits 33,500 Supplies Prepaid rent Inventory office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utilities expense Totals 3,000 24,000 75,000 69,750 $ 11,000 27,100 4,000 40,000 90,000 20,800 8,000 199,000 105,000 33,350 0 7,000 5 391,900 $ 391,900 All the information needed to prepare the year-end adjusting entries is reported below. 1. GameStop Corp. purchased office equipment in 2022 and is being depreciated using the straight-line method over a 9-year useful life with no residual value. 2. Accrued salaries at year-end should be $6,000. 3. GameStop Corp.borrowed $40,000 on September 1, 2024. The principal is due to be repaid in 9 years. We know that interest is payable twice a year on each August 31 and February 28 at an annual rate of 12% 4. GameStop Corp, debits supplies when supplies are purchased. Supplies on hand at year-end cost $600.
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