in the end net income should equal $139,184

TIUUICI Vala The trial balance of Sports Haven at June 30, 2017, the end of the current fiscal year is as follows: Sports Haven Work Sheet For Year Ended June 30, 2017 Trial Balance Account Title Dr. Cr. Cash 17,150 Accts receivable 127.010 Notes Receivable 15.000 Allowance for Bad Debt 1,270 Merchandise inv. 47,964 Prepaid insurance 7,450 Store Supplies 2,370 Store equipment 30,000 Accum. depreciation. 3,000 Accounts payable 12,420 Joe Athlete, Capital 105,572 Joe Athlete, Drawing 14,400 Income From Sales 455,400 Purchases 192,900 Advertising exp 7.950 Rent expense 30,000 Salaries exp 79,840 Utilities exp 5,628 577,662 577,662 Adjustment Information is as follows: a. Supplies on hand as of 6-30-17, $350. b. The insurance premium was paid on 5/1/17 as was for a six month period. Record the amount that has expired. (Round to the nearest whole dollar.) c. The accounts receivable clerk needs to make the year-end adjustment for the expected bad debt. The company uses the percentage of Sales to compute the adjustment. All sales were on account and the rate used is 1.5%. d. The Note Receivable was signed on 6/1/2017. (It was used to extend a past due accounts receivable.) The term of the note was 8% interest. The note is due within 6 months. Record the accrued interest. (Round to the nearest dollar.) e. A count of the merchandise inventory was made and totaled $68,800. f. The store equipment has not been depreciated for 2017. It was purchased several years ago and is being depreciated using the straight line method. The cost of the Store Equipment was $30,000. The salvage value was estimated at $5,000. The life at the time if was purchased was 5 years. No depreciation has been recorded for this year. R. Salaries accrued but not paid at June 30, 2017. $4,000. (gnore any payroll taxes.) h. It was discovered that the outside labor firm Account Temps had not been paid for the time incurred at year end. An amount of $2,000 is owed to them for services performed prior to 6-30-17. I. Included in the rent expense of $30,000 is $1500 that has been prepaid for July, 2017, E F G H File: WORKSHEET M N 0 P 0 20 S T U Income Statement Dr Cr. Balance Sheet Dr. Cr OOOOOO 2 3 4 5 6 7 8 Trial Balance 9 Account Title DI Cr 10 Cash 17.150 11 Accts receivable 127,010 12 Notes Receivable 15,000 13 Allowance for Bad Deb! 1,270 14 Merchandise in 47.964 15 Prepaid insurance 7.450 16 Store Supplies 2.370 17 Store equipment 30,000 18 Accum deprec 3.000 19 Accounts payable 12 420 20 Joe Athlete. Capital 105,572 21 Joe Athlete, Drawing 14.400 22 income From Sales 23 Purchases 192.900 24 Advertising exp 7.950 25 Rent expense 30.000 26 Salaries exp 79,840 27 Unities exp 5.628 28 577 602 577 562 29 Income Summary 30 Supplies expense 31 Insurance expense 32 Bad Debt Expense 33 Interest Receivable 34 Depreciation exp 35 Prepaid rent 36 Salanes payable 37 Interest Revenue 38 Outside Labor Expense Account Totals 40 Net incom Totals Worksheet Chart 455 400 Sports Haven Work Sheet For Year Ended June 30, 2017 Adjustments Ad T/Balance Dr Cr DI Cr 17 150 127.010 15 000 0 1,270 47 964 7.450 0 2,370 a 30,000 a 0 3,000 0 12 420 0 105,572 14,400 0 0 455 400 192,901 D 7.950 D 30,000 0 79,840 0 5,628 0 0 0 0 0 0 0 D 0 0 D 0 D 0 0 0 0 0 D D 0 0 ODT7.662677.662 . 0 D 0 a 0 O a 0 0 0 D