journal the following adjustments in proper journal entry form.

unadjusted trial balance

Step 2: Journalize the following adjustments in proper journal entry form. See Chapter 3 in your text. 12/31/21 Record the payment of semiannual interest on the bonds issued in January 2021 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1022 Record the adjustment to Unearned Revenues. Services related to Unearned Revenues of $22,000 were performed. Amortize Prepaid Insurance. The 12-month insurance policy was purchased on Septempber 3 12/31/21 9 12/31/21 LO 12/31/21 1. 11 12/31/21 Record Depreciation expense on Store Buildings $20,000; Office Buildings $30,000; and Office Equipment $10,000. Record Depreciation expense of the Store Equipment: Compute Depreciation expense on the store equipment purchased in July. Depreciation expense on other Store Equipment assets is $62,500. Estimated Allowance for Doubtful Accounts is computed to be 1% of current year sales. (Hint: the amount of the adjustment should be computed starting from the unadjusted balance in Allowance for Doubtful Accounts) 12 12/31/21 13 14 12/31/21 5 Income statement data: 6 Advertising expense 150,000 7 Bad Debt Expense 8 Cost of goods sold 3,500,000 9 Delivery expense 30,000 10 Depreciation expense-office buildings and equipment 30,000 11 Depreciation expense-store buildings and equipment 100,000 12 Gain (Loss) on asset disposal 1,933 13 Income tax expense 140,500 14 Insurance expense 15 Interest expense 21,000 16 Interest revenue 30,000 17 Miscellaneous administrative expense 7,500 18 Miscellaneous selling expense 14,000 19 Office rent expense 50,000 20 Office salaries expense 170,000 21 Office supplies expense 10,000 22 Sales 5,313,000 23 Sales commissions 185,000 24 Sales salaries expense 385,000 25 Store supplies expense 21,000 26 27 Balance sheet data: 28 Accounts payable 194,300 29 Accounts receivable 545,000 30 Accumulated depreciation-office buildings and equipment 1,580,000 31 Accumulated depreciation-store buildings and equipment 4,126,000 8,450 32 Allowance for doubtful accounts 500,000 33 Bonds payable Account & Unadjusted TB data Journal Entry data Journal 00 194,300 545,000 1,580,000 4,126,000 8,450 500,000 217,650 1,700,000 50,000 40,000 A 27 Balance sheet data: 28 Accounts payable 29 Accounts receivable 30 Accumulated depreciation-office buildings and equipment 31 Accumulated depreciation-store buildings and equipment 32 Allowance for doubtful accounts 33 Bonds payable 34 Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares 35 issued, 94,600 outstanding 36 Cash dividends - common stock 37 Cash dividends - preferred stock 38 Dividends Payable - common stock 39 Dividends Payable - preferred stock 40 Goodwill 41 Income tax payable 42 Interest receivable 43 Merchandise Inventory 44 Land 45 Office buildings 46 Office Equipment 47 Paid-in capital - Treasury Stock 48 Paid-in capital in excess of par--common stock 49 Paid-in capital in excess of par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares 50 issued) 51 Premium on bonds payable 52 Prepaid Insurance 53 Retained earnings 54 Store buildings 55 Store Equipment 56 Treasury stock 57 Unearned Revenues 700,000 44,000 1,200 778,000 2,000,000 4,000,000 320,000 13,000 736,800 170,000 1,280,000 19,000 30,000 ##### 9,000,000 3,560,000 178,200 112,000 50 Account & Unadjusted TB data Journal Entry data Ready Journal Step 2: Journalize the following adjustments in proper journal entry form. See Chapter 3 in your text. 12/31/21 Record the payment of semiannual interest on the bonds issued in January 2021 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1022 Record the adjustment to Unearned Revenues. Services related to Unearned Revenues of $22,000 were performed. Amortize Prepaid Insurance. The 12-month insurance policy was purchased on Septempber 3 12/31/21 9 12/31/21 LO 12/31/21 1. 11 12/31/21 Record Depreciation expense on Store Buildings $20,000; Office Buildings $30,000; and Office Equipment $10,000. Record Depreciation expense of the Store Equipment: Compute Depreciation expense on the store equipment purchased in July. Depreciation expense on other Store Equipment assets is $62,500. Estimated Allowance for Doubtful Accounts is computed to be 1% of current year sales. (Hint: the amount of the adjustment should be computed starting from the unadjusted balance in Allowance for Doubtful Accounts) 12 12/31/21 13 14 12/31/21 5 Income statement data: 6 Advertising expense 150,000 7 Bad Debt Expense 8 Cost of goods sold 3,500,000 9 Delivery expense 30,000 10 Depreciation expense-office buildings and equipment 30,000 11 Depreciation expense-store buildings and equipment 100,000 12 Gain (Loss) on asset disposal 1,933 13 Income tax expense 140,500 14 Insurance expense 15 Interest expense 21,000 16 Interest revenue 30,000 17 Miscellaneous administrative expense 7,500 18 Miscellaneous selling expense 14,000 19 Office rent expense 50,000 20 Office salaries expense 170,000 21 Office supplies expense 10,000 22 Sales 5,313,000 23 Sales commissions 185,000 24 Sales salaries expense 385,000 25 Store supplies expense 21,000 26 27 Balance sheet data: 28 Accounts payable 194,300 29 Accounts receivable 545,000 30 Accumulated depreciation-office buildings and equipment 1,580,000 31 Accumulated depreciation-store buildings and equipment 4,126,000 8,450 32 Allowance for doubtful accounts 500,000 33 Bonds payable Account & Unadjusted TB data Journal Entry data Journal 00 194,300 545,000 1,580,000 4,126,000 8,450 500,000 217,650 1,700,000 50,000 40,000 A 27 Balance sheet data: 28 Accounts payable 29 Accounts receivable 30 Accumulated depreciation-office buildings and equipment 31 Accumulated depreciation-store buildings and equipment 32 Allowance for doubtful accounts 33 Bonds payable 34 Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares 35 issued, 94,600 outstanding 36 Cash dividends - common stock 37 Cash dividends - preferred stock 38 Dividends Payable - common stock 39 Dividends Payable - preferred stock 40 Goodwill 41 Income tax payable 42 Interest receivable 43 Merchandise Inventory 44 Land 45 Office buildings 46 Office Equipment 47 Paid-in capital - Treasury Stock 48 Paid-in capital in excess of par--common stock 49 Paid-in capital in excess of par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares 50 issued) 51 Premium on bonds payable 52 Prepaid Insurance 53 Retained earnings 54 Store buildings 55 Store Equipment 56 Treasury stock 57 Unearned Revenues 700,000 44,000 1,200 778,000 2,000,000 4,000,000 320,000 13,000 736,800 170,000 1,280,000 19,000 30,000 ##### 9,000,000 3,560,000 178,200 112,000 50 Account & Unadjusted TB data Journal Entry data Ready Journal