Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars On December 31, 2019, the firms general ledger contained the accounts and balances that follow ACCOUNTS AND BALANCES Cash $ 30,600 Dr Accounts Receivable 35,700 Dr Allowance for Doubtful Accounts 470 Cr Merchandise Inventory 86,500 Dr Supplies 10,900 Dr Prepaid Insurance 6,000 Dr Office Equipment 9,800 Dr Accum DepreciationOffice Equipment 2,700 Cr Warehouse Equipment 36,300 Dr Accum DepreciationWarehouse Equipment 10,600 Cr Notes PayableBank 34,500 Cr Accounts Payable 12,700 Cr Interest Payable Social Security Tax Payable 1,730 Cr Medicare Tax Payable 393 Cr Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker, Capital 123,429 Cr Phillip Tucker, Drawing 58,500 Dr Sales 658,778 Cr Sales Returns and Allowances 10,500 Dr Purchases 352,500 Dr Purchases Returns and Allowances 9,700 Cr Income Summary Rent Expense 36,500 Dr Telephone Expense 2,700 Dr Salaries Expense 165,000 Dr Payroll Taxes Expense 13,500 Dr Supplies Expense Insurance Expense Depreciation ExpenseOffice Equip Depreciation ExpenseWarehouse Equip Uncollectible Accounts Expense Interest Expense ADJUSTMENTS a b Merchandise inventory on December 31, 2019, is $78,500 During 2019, the firm had net credit sales of $565,000 past experience indicates that 0 50 percent of these sales should result in uncollectible accounts On December 31, 2019, an inventory of supplies showed that items costing $1,230 were on hand On May 1, 2019, the firm purchased a one year insurance policy for $6,000 On January 2, 2017, the firm purchased office equipment for $9,800 At that time, the equipment was estimated to have a useful life of seven years and a salvage value of $350 On January 2, 2017, the firm purchased warehouse equipment for $36,300 At that time, the equipment was estimated to have a useful life of six years and a salvage value of $4,500 On November 1, 2019, the firm issued a four month, 10 percent note for $34,500 On December 31, 2019, the firm owed salaries of $12,000 that will not be paid until 2020 On December 31, 2019, the firm owed the employers social security tax (assume 6 2 percent) and Medicare tax (assume 1 45 percent) on the entire $12,000 of accrued wages On December 31, 2019, the firm owed the federal unemployment tax (assume 0 6 percent) and the state unemployment tax (assume 5 4 percent) on the entire $12,000 of accrued wages Required Prepare the Trial Balance section of a 10 column worksheet The worksheet covers the year ended December 31, 2019 Enter the adjustments above in the Adjustments section of the worksheet Complete the worksheet Analyze When the financial statements for Healthy Eating Foods Company are prepared, what net income will be reported for the period ended December 31, 2019

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Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firms general ledger contained the

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firms general ledger contained the accounts and balances that follow.

ACCOUNTS AND BALANCES
Cash	$	30,600	Dr.
Accounts Receivable		35,700	Dr.
Allowance for Doubtful Accounts		470	Cr.
Merchandise Inventory		86,500	Dr.
Supplies		10,900	Dr.
Prepaid Insurance		6,000	Dr.
Office Equipment		9,800	Dr.
Accum. DepreciationOffice Equipment		2,700	Cr.
Warehouse Equipment		36,300	Dr.
Accum. DepreciationWarehouse Equipment		10,600	Cr.
Notes PayableBank		34,500	Cr.
Accounts Payable		12,700	Cr.
Interest Payable
Social Security Tax Payable		1,730	Cr.
Medicare Tax Payable		393	Cr.
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Phillip Tucker, Capital		123,429	Cr.
Phillip Tucker, Drawing		58,500	Dr.
Sales		658,778	Cr.
Sales Returns and Allowances		10,500	Dr.
Purchases		352,500	Dr.
Purchases Returns and Allowances		9,700	Cr.
Income Summary
Rent Expense		36,500	Dr.
Telephone Expense		2,700	Dr.
Salaries Expense		165,000	Dr.
Payroll Taxes Expense		13,500	Dr.
Supplies Expense
Insurance Expense
Depreciation ExpenseOffice Equip.
Depreciation ExpenseWarehouse Equip.
Uncollectible Accounts Expense
Interest Expense

ADJUSTMENTS

a.b. Merchandise inventory on December 31, 2019, is $78,500.

During 2019, the firm had net credit sales of $565,000; past experience indicates that 0.50 percent of these sales should result in uncollectible accounts.
On December 31, 2019, an inventory of supplies showed that items costing $1,230 were on hand.
On May 1, 2019, the firm purchased a one-year insurance policy for $6,000.
On January 2, 2017, the firm purchased office equipment for $9,800. At that time, the equipment was estimated to have a useful life of seven years and a salvage value of $350.
On January 2, 2017, the firm purchased warehouse equipment for $36,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $4,500.
On November 1, 2019, the firm issued a four-month, 10 percent note for $34,500.
On December 31, 2019, the firm owed salaries of $12,000 that will not be paid until 2020.
On December 31, 2019, the firm owed the employers social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $12,000 of accrued wages.
On December 31, 2019, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $12,000 of accrued wages.

Required:

Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019.
Enter the adjustments above in the Adjustments section of the worksheet.
Complete the worksheet.

Analyze: When the financial statements for Healthy Eating Foods Company are prepared, what net income will be reported for the period ended December 31, 2019?