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 $ 30,900 Dr Accounts Receivable 36,000 Dr Allowance for Doubtful Accounts 500 Cr Merchandise Inventory 86,800 Dr Supplies 11,200 Dr Prepaid Insurance 6,360 Dr Office Equipment 10,000 Dr Accum DepreciationOffice Equipment 2,730 Cr Warehouse Equipment 38,400 Dr Accum DepreciationWarehouse Equipment 11,200 Cr Notes PayableBank 36,000 Cr Accounts Payable 13,000 Cr Interest Payable Social Security Tax Payable 1,760 Cr Medicare Tax Payable 396 Cr Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker, Capital 128,696 Cr Phillip Tucker, Drawing 60,000 Dr Sales 661,778 Cr Sales Returns and Allowances 10,800 Dr Purchases 354,000 Dr Purchases Returns and Allowances 10,000 Cr Income Summary Rent Expense 36,800 Dr Telephone Expense 3,000 Dr Salaries Expense 168,000 Dr Payroll Taxes Expense 13,800 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 $78,800 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 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	$	30,900	Dr.
Accounts Receivable		36,000	Dr.
Allowance for Doubtful Accounts		500	Cr.
Merchandise Inventory		86,800	Dr.
Supplies		11,200	Dr.
Prepaid Insurance		6,360	Dr.
Office Equipment		10,000	Dr.
Accum. DepreciationOffice Equipment		2,730	Cr.
Warehouse Equipment		38,400	Dr.
Accum. DepreciationWarehouse Equipment		11,200	Cr.
Notes PayableBank		36,000	Cr.
Accounts Payable		13,000	Cr.
Interest Payable
Social Security Tax Payable		1,760	Cr.
Medicare Tax Payable		396	Cr.
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Phillip Tucker, Capital		128,696	Cr.
Phillip Tucker, Drawing		60,000	Dr.
Sales		661,778	Cr.
Sales Returns and Allowances		10,800	Dr.
Purchases		354,000	Dr.
Purchases Returns and Allowances		10,000	Cr.
Income Summary
Rent Expense		36,800	Dr.
Telephone Expense		3,000	Dr.
Salaries Expense		168,000	Dr.
Payroll Taxes Expense		13,800	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 $78,800.

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 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?