Question
Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 20X1, the firm's general ledger contained the
Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 20X1, the firm's general ledger contained the accounts and balances that follow.
Healthy Eating Foods Company
Worksheet
Year Ended December 31, 20X1Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance SheetAccount NameDebitCreditDebitCreditDebitCreditDebitCreditDebitCreditCash$30,100.00$30,100.00$30,100.00Accounts Receivable35,200.0035,200.0035,200.00Allowance for Doubtful Accounts420.002,800.003,220.003,220.00Merchandise Inventory86,000.0078,000.0086,000.0078,000.0078,000.00Supplies10,400.009,220.001,180.001,180.00Prepaid Insurance5,400.003,600.001,800.001,800.00Office Equipment8,300.008,300.008,300.00Accumulated Depr.?Office Equipment2,650.001,325.003,975.003,975.00Warehouse Equipment28,000.0028,000.0028,000.00Accumulated Depr.?Warehouse Equipment9,600.004,800.0014,400.0014,400.00Notes Payable?Bank32,000.0032,000.0032,000.00Accounts Payable12,200.0012,200.0012,200.00Interest Payable640.00640.00640.00Social Security Tax Payable1,680.00310.001,990.001,990.00Medicare Tax Payable388.0072.50460.50460.50Federal Unemployment Tax Payable30.0030.0030.00State Unemployment Tax Payable270.00270.00270.00Salaries Payable5,000.005,000.005,000.00Phillip Tucker, Capital108,684.00108,684.00108,684.00Phillip Tucker, Drawing56,000.0056,000.0056,000.00Sales653,778.00653,778.00653,778.00Sales Returns and Allowances10,000.0010,000.0010,000.00Purchases350,000.00350,000.00350,000.00Purchases Returns and Allowance9,200.009,200.009,200.00Income Summary86,000.0078,000.0086,000.0078,000.0086,000.0078,000.00Rent Expenses36,000.0036,000.0036,000.00Telephone Expense2,200.002,200.002,200.00Salaries Expense160,000.005,000.00165,000.00165,000.00Payroll Taxes Expense13,000.00682.5013,682.5013,682.50Supplies Expense9,220.009,220.009,220.00Insurance Expense3,600.003,600.003,600.00Depr. Expense?Office Equipment1,325.001,325.001,325.00Depr. Expense?Warehouse Equipment4,800.004,800.004,800.00Uncollectible Accounts Expense2,800.002,800.002,800.00Interest Expense640.00640.00640.00Totals$830,600.00$830,600.00$192,067.50$192,067.50$923,847.50$923,847.50$685,267.50$740,978.00$238,580.00$182,869.50Net Income55,710.5055,710.50$740,978.00$740,978.00$238,580.00$238,580.00
Required:
- Record adjusting entries in the general journal as of December 31, 20X1.
- Record closing entries in the general journal as of December 31, 20X1.
- Record reversing entries in the general journal as of January 1, 20X2.
Analyze:
Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?
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