Please help with adjusted entries Let me know if I need to make edits to this info
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Below are the financial statements of Zipparoo, Inc. Lipparoo sells rubber work boots called "Zips". In this assignment, you will account for complex transactions and update existing account balances. Below are the financial statements for the previous month. Income Statement (previous month) Sales Revenue 60,000 Cost of Goods Sold 12.000 Gross Profit 48,000 Salaries Expense 9,000 Bad Debt Expense 6,000 Rent Expense 7,000 Office Supplies Expense 3,000 Depreciation Expense 8,000 33,000 Operating Income 15,000 Gain on Sale of Equipment 3,000 Interest Expense (5,000) (2,000) Net Income 13,000 Statement of Retained Earnings (previous month) Beginning Retained Earnings 40,000 Net Income 13,000 Dividends (3,000) Ending Retained Earnings 50,000 Balance Sheet (previous month) Assets Liabilities Cash 53,000 Accounts Payable 9.000 Accounts Receivable 31,000 Salaries Payable 2,000 Allow For Doubtful Accts (3,000) Unearned Revenues 20,000 Office Supplies 7,000 Long-term Debt 27,000 Inventory 18,000 Total Liabilities 58,000 Prepaid Rent 48,000 Equipment 100,000 Equities Accumulated Depreciation (35,000) Common Stock 111,000 Retained Earnings 50,000 Total Equities 161,000 Total Assets 219,000 Total Liab and Equities 219,000 Additional information at the BEGINNING of the month: 1. Inventory consists of 1,000 pairs of Zips", each costing $18. Zipparoo uses the LIFO inventory method. Round all inventory calculations to the nearest dollar. 2. The net method is used for recording purchases. 3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was estimated that the equipment would have a useful life of 20 years and a salvage value of $30,000. Zipparoo uses the straight-line depreciation method. 4. Zipparoo uses the Percentage-of-Receivables method of accounting for bad debts. 5. Round all calculations to the nearest dollar. Transactions during the month: Jan. 1 Paid $2,400 for a one year premium on property and casualty insurance. The policy covers the period January 1, 20X1 to December 31, 20X2 Jan. 1 Sold 720 Zips" to Joey on account for $162each, terms 2/10, net 30. Jan. 2 Zipparoo purchased additional equipment for cash for $722000. The equipment has an expected life of 10 years and an estimated salvage value of $4 800. Jan. 5 Joey returned F" pairs of Zips because of defections. The inventory could not be resold and was disposed of. Jan. 8 Purchased (sopairs of Zips from Bluey on account foi $gach, terms 3/10, net 60. Jan. 9 Office supplies totaling $7, 200 were purchased on account. Jan. 9 Joey paid full amount owed. Round calculations to the nearest dollar. Jan. 12 Sold 7 29 pairs of Zips to Pete on account for $82 each, terms 2/10, net 30. Jan. 14 Purchased 480 pairs of Zips" from Kanga on account for $18 each, terms 2/10, net 30. Jan. 17 Paid full amount owed to Bluey from Jan. 8 purchase. Jan. 18 Paid $1 2000 for workers' salaries. This amount includes amounts owed from the previous month. Jan. 23 Delivered 320 pairs of Zips to Flash who had purchased them in advance last month, $12,000. Jan. 24 Paid interest on Long-Term Debt, $5,800. Jan. 25 Paid dividends to stockholders, $3,300. Jan. 26 Received cash from customers billed in the previous month, $12,000. Jan. 27 Pete paid full amount owed. Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase. Jan. 28 One of Zipparoo's customers, Rooth, owes $2,200 but has informed Zipparoo that he will not pay because of bankruptcy. Zipparoo writes off Rooth's account as uncollectible. Jan. 30 Paid utilities for January of $475. Page 3 of 5 5. Journalize and post the adjusting entries using the following information: a. Zipparoo estimates that 10% of accounts owed to the company would not be collected. Round to the dollar. b. Office Supplies at the end of the year totaled $3,000. c. Must take depreciation for equipment use this month for both old and new equipment. Round Total depreciation to the dollar. d. Salaries of $2200 for January will not be paid until February 5 of next month. e. In a prior month, 12 months rent had been purchased in advance for $96,000. Page 4 of 5 f. Must record insurance use this month. g. A physical count of inventory indicates there is $2,500 of inventory on hand. Below are the financial statements of Zipparoo, Inc. Lipparoo sells rubber work boots called "Zips". In this assignment, you will account for complex transactions and update existing account balances. Below are the financial statements for the previous month. Income Statement (previous month) Sales Revenue 60,000 Cost of Goods Sold 12.000 Gross Profit 48,000 Salaries Expense 9,000 Bad Debt Expense 6,000 Rent Expense 7,000 Office Supplies Expense 3,000 Depreciation Expense 8,000 33,000 Operating Income 15,000 Gain on Sale of Equipment 3,000 Interest Expense (5,000) (2,000) Net Income 13,000 Statement of Retained Earnings (previous month) Beginning Retained Earnings 40,000 Net Income 13,000 Dividends (3,000) Ending Retained Earnings 50,000 Balance Sheet (previous month) Assets Liabilities Cash 53,000 Accounts Payable 9.000 Accounts Receivable 31,000 Salaries Payable 2,000 Allow For Doubtful Accts (3,000) Unearned Revenues 20,000 Office Supplies 7,000 Long-term Debt 27,000 Inventory 18,000 Total Liabilities 58,000 Prepaid Rent 48,000 Equipment 100,000 Equities Accumulated Depreciation (35,000) Common Stock 111,000 Retained Earnings 50,000 Total Equities 161,000 Total Assets 219,000 Total Liab and Equities 219,000 Additional information at the BEGINNING of the month: 1. Inventory consists of 1,000 pairs of Zips", each costing $18. Zipparoo uses the LIFO inventory method. Round all inventory calculations to the nearest dollar. 2. The net method is used for recording purchases. 3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was estimated that the equipment would have a useful life of 20 years and a salvage value of $30,000. Zipparoo uses the straight-line depreciation method. 4. Zipparoo uses the Percentage-of-Receivables method of accounting for bad debts. 5. Round all calculations to the nearest dollar. Transactions during the month: Jan. 1 Paid $2,400 for a one year premium on property and casualty insurance. The policy covers the period January 1, 20X1 to December 31, 20X2 Jan. 1 Sold 720 Zips" to Joey on account for $162each, terms 2/10, net 30. Jan. 2 Zipparoo purchased additional equipment for cash for $722000. The equipment has an expected life of 10 years and an estimated salvage value of $4 800. Jan. 5 Joey returned F" pairs of Zips because of defections. The inventory could not be resold and was disposed of. Jan. 8 Purchased (sopairs of Zips from Bluey on account foi $gach, terms 3/10, net 60. Jan. 9 Office supplies totaling $7, 200 were purchased on account. Jan. 9 Joey paid full amount owed. Round calculations to the nearest dollar. Jan. 12 Sold 7 29 pairs of Zips to Pete on account for $82 each, terms 2/10, net 30. Jan. 14 Purchased 480 pairs of Zips" from Kanga on account for $18 each, terms 2/10, net 30. Jan. 17 Paid full amount owed to Bluey from Jan. 8 purchase. Jan. 18 Paid $1 2000 for workers' salaries. This amount includes amounts owed from the previous month. Jan. 23 Delivered 320 pairs of Zips to Flash who had purchased them in advance last month, $12,000. Jan. 24 Paid interest on Long-Term Debt, $5,800. Jan. 25 Paid dividends to stockholders, $3,300. Jan. 26 Received cash from customers billed in the previous month, $12,000. Jan. 27 Pete paid full amount owed. Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase. Jan. 28 One of Zipparoo's customers, Rooth, owes $2,200 but has informed Zipparoo that he will not pay because of bankruptcy. Zipparoo writes off Rooth's account as uncollectible. Jan. 30 Paid utilities for January of $475. Page 3 of 5 5. Journalize and post the adjusting entries using the following information: a. Zipparoo estimates that 10% of accounts owed to the company would not be collected. Round to the dollar. b. Office Supplies at the end of the year totaled $3,000. c. Must take depreciation for equipment use this month for both old and new equipment. Round Total depreciation to the dollar. d. Salaries of $2200 for January will not be paid until February 5 of next month. e. In a prior month, 12 months rent had been purchased in advance for $96,000. Page 4 of 5 f. Must record insurance use this month. g. A physical count of inventory indicates there is $2,500 of inventory on hand
