Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars On December 31, 2019, the firm's general ledger contained the accounts and balances that follow ACCOUNTS AND BALANCESCash$30,900Dr Accounts Receivable36,000Dr Allowance for Doubtful Accounts500Cr Merchandise Inventory86,800Dr Supplies11,200Dr Prepaid Insurance6,360Dr Office Equipment10,000Dr Accum DepreciationOffice Equipment2,730Cr Warehouse Equipment38,400Dr Accum DepreciationWarehouse Equipment11,200Cr Notes PayableBank36,000Cr Accounts Payable13,000Cr Interest PayableSocial Security Tax Payable1,760Cr Medicare Tax Payable396Cr Federal Unemployment Tax PayableState Unemployment Tax PayableSalaries PayablePhillip Tucker, Capital128,696Cr Phillip Tucker, Drawing60,000Dr Sales661,778Cr Sales Returns and Allowances10,800Dr Purchases354,000Dr Purchases Returns and Allowances10,000Cr Income SummaryRent Expense36,800Dr Telephone Expense3,000Dr Salaries Expense168,000Dr Payroll Taxes Expense13,800Dr Supplies ExpenseInsurance ExpenseDepreciation ExpenseOffice Equip Depreciation ExpenseWarehouse Equip Uncollectible Accounts ExpenseInterest Expense ADJUSTMENTS a b Merchandise inventory on December 31, 2019, is $78,800 During 2019, the firm had net credit sales of $568,000 past experience indicates that 0 75 percent of these sales should result in uncollectible accounts On December 31, 2019, an inventory of supplies showed that items costing $1,260 were on hand On May 1, 2019, the firm purchased a one year insurance policy for $6,360 On January 2, 2017, the firm purchased office equipment for $10,000 At that time, the equipment was estimated to have a useful life of seven years and a salvage value of $445 On January 2, 2017, the firm purchased warehouse equipment for $38,400 At that time, the equipment was estimated to have a useful life of six years and a salvage value of $4,800 On November 1, 2019, the firm issued a four month, 10 percent note for $36,000 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 employer's 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 firm's general ledger contained the

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

ACCOUNTS AND BALANCESCash$30,900Dr.Accounts Receivable36,000Dr.Allowance for Doubtful Accounts500Cr.Merchandise Inventory86,800Dr.Supplies11,200Dr.Prepaid Insurance6,360Dr.Office Equipment10,000Dr.Accum. DepreciationOffice Equipment2,730Cr.Warehouse Equipment38,400Dr.Accum. DepreciationWarehouse Equipment11,200Cr.Notes PayableBank36,000Cr.Accounts Payable13,000Cr.Interest PayableSocial Security Tax Payable1,760Cr.Medicare Tax Payable396Cr.Federal Unemployment Tax PayableState Unemployment Tax PayableSalaries PayablePhillip Tucker, Capital128,696Cr.Phillip Tucker, Drawing60,000Dr.Sales661,778Cr.Sales Returns and Allowances10,800Dr.Purchases354,000Dr.Purchases Returns and Allowances10,000Cr.Income SummaryRent Expense36,800Dr.Telephone Expense3,000Dr.Salaries Expense168,000Dr.Payroll Taxes Expense13,800Dr.Supplies ExpenseInsurance ExpenseDepreciation ExpenseOffice Equip.Depreciation ExpenseWarehouse Equip.Uncollectible Accounts ExpenseInterest Expense

ADJUSTMENTS

a.-b.Merchandise inventory on December 31, 2019, is $78,800.

During 2019, the firm had net credit sales of $568,000; past experience indicates that 0.75 percent of these sales should result in uncollectible accounts.
On December 31, 2019, an inventory of supplies showed that items costing $1,260 were on hand.
On May 1, 2019, the firm purchased a one-year insurance policy for $6,360.
On January 2, 2017, the firm purchased office equipment for $10,000. At that time, the equipment was estimated to have a useful life of seven years and a salvage value of $445.
On January 2, 2017, the firm purchased warehouse equipment for $38,400. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $4,800.
On November 1, 2019, the firm issued a four-month, 10 percent note for $36,000.
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 employer's 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?