please add the explanation of process how you got the each numbers on adjustments.
The annual provision for doubtful accounts receivable is recorded using a flat 10% of the year-end accounts receivable balance. Adjustments The insurance premium of $8,460 purchased on August 31, 2007 covers the period from September 1, 2007 through August 31, 2008. No insurance expense for the year has been recorded. The January 1 balance in the prepaid insurance account represents the insurance premium through August 31. An inventory count of office supplies revealed $830 of supplies on hand at year-end. The payroll summary for the bi-weekly pay period contains the following information as of December $5,600 375 1,036 218 Delivery and Warehouse Wages FICA Tax Payable 31, 2007: Federal income tax withheld State income tax withheld There was no federal or state unemployment tax associated with this payroll because all wages and salaries earned during the last quarter exceed the maximum subject to employment tax. Simple interest on the Mortgage Note Payable accrues at an annual rate of 8%. Interest is paid annually on January 2nd. Principal will be repaid at the end of the note term. The 10-year, 9% Bonds Payable pay interest annually on January 1. No interest has been accrued during the year, and bond discount is amortized on a straight-line basis. The bonds were issued on January 01, 2001. Interest accrued on the Notes Receivable (including all notes received during the month) as of December 31st amount to $1,668. amounts to $1,800. Interest accrued on the Note Payable as of December 31 The Prepaid Rent balance as of November 30th covers lease payments on the warehouse from September 1, 2007 through February 29, 2008. $530 is owed to Northern Electric Company and $279 is owed to National Water and Power for utility services provided during a December. Plant assets to be depreciated are composed of the following: ESTIMATED SALVAGE VALUE $20,000 7,300 1,000 2,000 DEPRECIATION ASSET Buildings Trucks Lifts Furniture & Equipment COST $306,000 61,000 9,500 32,800 USEFUL LIFE OD Straight-Line Units of Activity Straight-Line Straight-Line 25 Years 60,000 Miles 10 Years 7 Years The trucks were driven a total of 27,000 miles in 2007. Data above for lifts is exclusive of the lift sold during the month. ROCKFORD CORPORATION, INC. Trial Balance November 30, 2007 November 30, 2007 Credit December 31, 2006 Debit 40,620 Debit Credit 249,930 150 S Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory Office Supplies Prepaid Insurance Prepaid Rent Bond Sinking Fund Land Buildings Accumulated Depreciation - Buildings Trucks and Lifts 150 317,420 253,643 S 4,580 13,520 45,000 40,000 580 531,960 2,320 11,020 25,410 145,000 450,960 470 2,560 3,630 130,000 43,000 306,000 130,789 306,000 73,040 73,040 78,400 78,400 Accumulated Depreciation- Trucks and Lifts Furniture and Fixtures Accumulated Depreciation- Furniture and Fixtures Notes Payable Accounts Payable Salaries and Wages Payable FICA Withholding Taxes Payable Federal Income Tax Withholding Payable State Income Tax Withholding Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Dividends Payable Interest Payable Mortgage Notes Payable Bonds Payable Discount on Bonds Payable Common Stock Paid-In Capital in Excess of Par Value Retained Eamings Treasury Stock Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Advertising Expense Sales Salaries and Commissions Delivery and Warehouse Wages Expense Payroll Tax Expense Freight-Out Office and Administrative Salary Expense Office Supplies Expense Utilities Expense Interest Expense Interest Revenue 39,540 39,540 32,800 32,800 13,200 15,000 86,352 1,906 781 13,200 15,000 126,850 1,787 9,573 2,486 5,148 1,595 216 400 1,323 2,600 23,100 15,165 43,000 113,000 275,000 275,000 4,400 4,400 189,000 256,400 378,537 189,000 256,400 378,537 44,610 44,610 5,234,940 9,380 73,044 3,648,722 6,578 132,990 110,616 82,916 17,732 689,516 1,540 16,270 24,570 3,150 6,739,083 6,739,083 1,431,823 1,431,823 S Totals
