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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 accounts

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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 accounts and balances that folow ACCOUNTS AND BALANCES $ 29.200 Dr Allowance for Doubtful Accounts Merchandse Invertory 330 C 85.100 Dr 9,500 Dr 4,320 Dr 6.900 Dr 2560 Cr 18700 Dr Prepaid Insurance Office Equipment Equipment Warehouse Equipment Notes Payable-Bank Accounts Peyable Interest Payable Social Seaurity Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unamployment Tax Payabke Salanies Payable Philp Tucker, Capital Philp Tuoker, Drawing 27.500 C 11,300 C 1590 Cr 379 Cr 89.083 C 51500 Dr 644 778 C Sales Retuns and Alowances 9,100 D 345,500 Dr 8,300 . Purchases Returrs and Alowances Income Summary Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Supples Expanse Insurance Expense Depreciation Expense Office Equip 35,100 Dr 151,000 Dr 12,100 Dr Uncolectble Accounts Expense Interest Expense ADJUSTMENTS a-b. Merchandise inventory on December 31, 2019, is $77.100. c. Dring 2019. the firm had net credit sales of $551 ,000, past experence indicatestat 0 50 percent of these sales should resut in ueoleable accouts d. On December 31, 2019, an inventory of supplies showed that items costing $1,090 were on hand e. On May 1, 2019, the firm purchased a one-year insurande policy for $4,320 f. On January 2, 2017, the firm purchased office equipment for $6.900. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $500 g. On January 2, 2017, the firm purchased warehouse equipment for $18,700. At that time, the equipment was estimated to have a useful Ite of four years and a salvage value of $3,100 hOn November 1 2019. the frm issued a four-month 12 percent note for $27,500 l. On December 31, 2019, the firm owed salaries of $10,000 that will not be paid untl 2020. J. 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 $10,000 of accrued wages k. On December 31, 2019. the firm owed fe federal u employment tax (assume 0.6 percent) and the ate unemployment tax (assume 4 percent) on the entre $10,000 of ace ed wages Required: 1. Prepare the Trial Balance section of a 10-column worksheet The worksheet covers the year ended December 31, 2019 2. Enter the adjustments above in the Adjustments section of the worksheet 3. 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, 20197

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