Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31, 20X1, the firm's general ledger contained the accounts and balances that follow. Healthy Eating Foods Company Worksheet Accounts Merchandise 86,000.00 Inventory
On December 31, 20X1, the firm's general ledger contained the accounts and balances that follow. Healthy Eating Foods Company Worksheet Accounts Merchandise 86,000.00 Inventory Supplies 10,400.00 Prepaid 5,400.00 Insurance Office 8,300.00 Equipment Accumulated Depreciation- Office 2,650.00 1,325.00 Year Ended December 31, 20X1 Trial Balance Adjustments Adjusted Trial Balance Account Name Cash Accounts Receivable Debit Credit Debit Credit Debit Credit Income Statement Debit Credit Balance Sheet 30,100.00 30,100.00 Debit 30,100.00 Credit 35,200.00 35,200.00 35,200.00 Allowance for Doubtful 420.00 2,800.00 3,220.00 3,220.00 78,000.00 86,000.00 78,000.00 9,220.00 1,180.00 78,000.00 1,180.00 3,600.00 1,800.00 1,800.00 8,300.00 8,300.00 3,975.00 3,975.00 Equipment Warehouse 28,000.00 Equipment 28,000.00 28,000.00 Accumulated Depreciation- 9,600.00 4,800.00 Warehouse 14,400.00 14,400.00 Equipment Notes Payable 32,000.00 -Bank 32,000.00 32,000.00 Accounts 12,200.00 Payable 12,200.00 Interest 640.00 Payable Social Security Tax 1,680.00 310.00 640.00 1,990.00 12,200.00 640.00 1,990.00 Payable Medicare Tax 388.00 72.50 460.50 Payable 460.50 Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable 30.00 30.00 270.00 270.00 5,000.00 5,000.00 Phillip Tucker, 108,684.00 108,684.00 Capital Phillip Tucker, 56,000.00 Drawing Sales 653,778.00 Sales Returns and 10,000.00 Allowances Purchases 350,000.00 Purchases Returns and 9,200.00 56,000.00 56,000.00 653,778.00 653,778.00 10,000.00 10,000.00 350,000.00 350,000.00 9,200.00 9,200.00 Allowance Income 86,000.00 78,000.00 86,000.00 78,000.00 86,000.00 78,000.00 Summary Rent Expenses 36,000.00 36,000.00 36,000.00 Telephone 2,200.00 2,200.00 Expense 2,200.00 Salaries 160,000.00 5,000.00 165,000.00 Expense 165,000.00 Payroll Taxes 13,000.00 682.50 13,682.50 Expense 13,682.50 Supplies Expense 9,220.00 9,220.00 9,220.00 Insurance Expense Depreciation Expense- 3,600.00 3,600.00 3,600.00 30.00 270.00 5,000.00 108,684.00 1,325.00 1,325.00 1,325.00 Office Equipment Depreciation Expense- 4,800.00 4,800.00 Warehouse 4,800.00 Equipment Uncollectible Accounts 2,800.00 2,800.00 2,800.00 Expense Interest 640.00 640.00 640.00 Expense Totals 830,600.00 830,600.00 192,067.50 192,067.50 923,847.50 923,847.50 685,267.50 740,978.00 238,580.00 182,869.50 Expense Totals Net Incone 830,600.00 830,600.00 192,067.50 192,067.50 923,847.50 923,847.50 685,267.50 740,978.00 238,580.00 182,869.50 55,710.50 55,710.50 740,978.00 740,978.00 238,580.00 238,580.00 Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. The unadjusted trial balance data for the year ended December 31, 2024 is included on the general ledger and trial balance tabs. The firm's general ledger balances on December 31, 2024 are found on the general ledger tab below. Information for the firm's December 31, 2024 adjusting entries is found below. ADJUSTMENTS a.) Prepare the adjusting entry related to beginning Merchandise inventory. b.) Merchandise inventory on December 31, 2024, is $78,000. Prepare the required adjusting entry. c.) During 2024, the firm had net credit sales of $560,000; past experience indicates that 0.5 percent of these sales should result in uncollectible accounts. d.) On December 31, 2024, an inventory of supplies showed that items costing $1,180 were on hand. e.) On May 1, 2024, the firm purchased a one-year insurance policy for $5,400. f.) Three years ago the firm purchased office equipment for $8,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $350. g.) Three years ago the firm purchased warehouse equipment for $28,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. h.) On November 1, 2024, the firm issued a four-month, 12 percent note for $32,000. i.) On December 31, 2024, the firm owed salaries of $5,000 that will not be paid until 2025. j.) On December 31, 2024, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,000 of accrued wages. k.) On December 31, 2024, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5,000 of accrued wages. Requirement General Journal General Ledger Trial Balance Income Statement Owners Equity Balance Sheet Reversing Entries Show less 68% of available points For each transaction, prepare the required journal entry or adjusting entry on the General Journal tab. List debits before credits. Note: Round your answers to the nearest whole dollar. View transaction list Journal entry worksheet < 7 8 9 10 11 12 15 Record the closing entry to close the revenue and other credit items. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Requirement General Ledger > Journal entry worksheet 1 8 9 10 11 12 13 15 |> Record the closing entry to close temporary accounts with debit balances to Income Summary. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Recordantas. Class antes. Vous sonoral fournal. Journal entry worksheet < 1 8 10 11 12 13 14 15 Record the closing entry to close Income Summary. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Requirement General Ledger > Journal entry worksheet 1 8 9 10 11 12 13 14 15 Record any additional closing entry required. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Requirement General Ledger > Revenues: HEALTHY EATING FOODS COMPANY Income Statement For the Year Ended December 31, 2024 Net sales Cost of goods sold: Gross profit on sales Expenses: Total expenses Net loss S 0 0 < Trial Balance 0 0 0 0 0 0 0 0 0 $ 10 + 0 332,800 $ (332,800) 0 $ (332,800) Owners Equity > Current assets Accounts receivable Total current assets Plant and equipment Office equipment Warehouse equipment Total Plant and equipment Total Assets HEALTHY EATING FOODS COMPANY Balance Sheet December 31, 2024 A88ET8 $ 0 35,200 0 35,200 0 0 0 0 $ 35,200 s 8,300 8,300 28,000 0 28,000 LIABILITIES AND OWNER & EQUITY Current liabilities: Total abilities Owner's equity Total liabilities and owner's equity 36,300 $ 71,500 $ 0 O 0 D 0 0 0 0 0 0 $ 0 (280,116) (280,116) a.) The adjusting entry related to beginning Merchandise inventory. b.) The adjusting entry related to Merchandise inventory on December 31, 2024. c.) During 2024, the firm had net credit sales of $560,000; past experience indicates that 0.5 percent of these sales should result in uncollectible accounts. d.) On December 31, 2024, an inventory of supplies showed that items costing $1,180 were on hand. e.) On May 1, 2024, the firm purchased a one-year insurance policy for $5,400 f.) On January 2, 2024, the firm purchased office equipment for $8,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $350. g.) On January 2, 2024, the firm purchased warehouse equipment for $28,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. h.) On November 1, 2024, the firm issued a four-month, 12 percent note for $32,000. i.) On December 31, 2024, the firm owed salaries of $5,000 that will not be paid until 2025. j.) On December 31, 2024, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,000 of accrued wages k.) On December 31, 2024, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5,000 of accrued wages. REVERSED ON JANUARY 1,2025? < Balance Sheet Reversing Entries > a.) The adjusting entry related to beginning Merchandise inventory. b.) The adjusting entry related to Merchandise inventory on December 31, 2024. c.) During 2024, the firm had net credit sales of $560,000; past experience indicates that 0.5 percent of these sales should result in uncollectible accounts. d.) On December 31, 2024, an inventory of supplies showed that items costing $1,180 were on hand. e.) On May 1, 2024, the firm purchased a one-year insurance policy for $5,400. f.) On January 2, 2024, the firm purchased office equipment for $8,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $350. g.) On January 2, 2024, the firm purchased warehouse equipment for $28,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. h.) On November 1, 2024, the firm issued a four-month, 12 percent note for $32,000. i.) On December 31, 2024, the firm owed salaries of $5,000 that will not be paid until 2025. j.) On December 31, 2024, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,000 of accrued wages. k.) On December 31, 2024, the firm owed the federal unemployment tax (assume 0.8 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5,000 of accrued wages. REVERSED ON JANUARY 1,2025? Yes No < Balance Sheet Reversing En
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started