Notes / Detail

Prepaid Expenses Detail as of 12/31/2022

Insurance premium of $2,400 paid on 11/1/2022 for 1 year of coverage 2.000

Rent was paid on December 31, 2022 for the month of January 2023 500

2.500

Acc. Depreciation

Equipment detail as of 12/31/2022 2021 2022

Equipment - 10year useful life - purchased 12/1/2021 30.000 250 3.000

Equipment - 3year useful life - purchased 6/1/2022 15.000 - 2.917

Equipment - 5year useful life - purchased 1/1/2022 10.000 - 2.000

55.000 250 7.917

Accounts payable detail as of 12/31/2022

Inventory purchased on account 2.000

Accounting services for 2022 3.000

Utilities payable 500

5.500

Note Payable detail

Note Payable obtained on 11/1/2022 - interest rate of 10% due in 4 years

Operating expenses includes: Rent, Utilities, Salaries, Insurance, etc.

2023 Events

# Detail

1 Paid Salaries payable $1,250 that were accrued as of 12/31/2022

2 Paid Utilities payable $500 that were accrued as of 12/31/2022

3 Paid external accountant $3,000 for services rendered in 2022 that were accrused as of 12/31/2022

4 Sales revenue was $30,000, of which $10,000 was on credit; COGS was $19,500

5 Collected $19,000 on accounts receivable

6 Purchased $40,000 of merchandise, of which $8,000 was on account

7 Paid $6,000 cash toward accounts payable

8 Sales revenue was $82,000 (in cash); COGS was $53,300

9 Paid $19,000 cash in operating expenses

10 Purchased $50,000 of merchandise, of which $25,000 was on credit

11 Collected $6,000 on accounts receivable

find adjusting journal entry.