post adjusting entries to general journal
(provided list of account titles)
Information for Adjusting Entries on December 31, 2021 1 An aging of accounts receivable revealed that 5% of accounts receivable are uncollectible. 2 Depreciation Expense: Straight Line Depreciation is used. You will need to think about this carefully (a) For equipment purchased PRIOR TO 2021, the equipment has a $15,000 salvage value and a useful life of 9 years. (b) For equipment purchased DURING 2021, the equipment has an $9,000 salvage value and a 9-year useful life. Pre-paid rent needs to be adjusted. Assume the beginning balance of pre-paid rent represented rent from January 3 1 to September 1. 4 Salaries accrued but not yet paid are $14,000. 5 Accrue the interest on the note payable that was given for the purchase of equipment. 6 Utilities owed but not yet paid are $2,200. 7 Supplies on hand are $675. The income tax rate is 25% of income before taxes (note-you will need to calculate income before taxes before 8 you can make this last adjusting entry!). Our Favorite Store, Chart of Accounts Liabilities Assets Stockholders Equity Cash Accounts Receivable Allowance for Doubtful Accts. Inventory Supplies Prepaid Rent Equipment Accumulated Depr. - Equipment Accounts Payable Interest Payable Notes Payable Salaries Payable Utilities Payable Common Stock APIC - Common Preferred Stock Retained Earnings Dividends Sales Revenue Gains (Other) Sales Discounts Sales Returns and Allowances Bad Debt Expense Depreciation Expense Interest Expense Maintenance & Repairs Expense Rent Expense Salary Expense Supplies Expense Tax Expense Utilities Expense Losses (Other) Credit Debit 863,400 42,800 800 173,000 7,400 33,000 285,000 Trial Balance December 31, 2021 Account Title Cash Accounts Receivable Allowance for Doubtful (Uncollectible) Accounts Inventory Supplies Prepaid Rent Equipment Accumulated Depreciation - Equipment Accounts Payable Income Taxes Payable Notes Payable Common Stock, $2 par value Additional Paid In Capital - Common Preferred Stock, $25 par value Retained Earnings Dividends Sales Revenue Sales Discounts Sales Returns and Allowances Gains Cost of Goods Sold Interest Expense Maintenance and Repair Expense Salary Expense Utilities Expense 12,000 104,800 4,000 90,000 150,000 215,000 175,000 59,000 10,000 950,000 17,000 12,000 5,000 237,000 2,400 2,400 73,400 5,200 1.764.800 1.764.800 Information for Adjusting Entries on December 31, 2021 1 An aging of accounts receivable revealed that 5% of accounts receivable are uncollectible. 2 Depreciation Expense: Straight Line Depreciation is used. You will need to think about this carefully (a) For equipment purchased PRIOR TO 2021, the equipment has a $15,000 salvage value and a useful life of 9 years. (b) For equipment purchased DURING 2021, the equipment has an $9,000 salvage value and a 9-year useful life. Pre-paid rent needs to be adjusted. Assume the beginning balance of pre-paid rent represented rent from January 3 1 to September 1. 4 Salaries accrued but not yet paid are $14,000. 5 Accrue the interest on the note payable that was given for the purchase of equipment. 6 Utilities owed but not yet paid are $2,200. 7 Supplies on hand are $675. The income tax rate is 25% of income before taxes (note-you will need to calculate income before taxes before 8 you can make this last adjusting entry!). Our Favorite Store, Chart of Accounts Liabilities Assets Stockholders Equity Cash Accounts Receivable Allowance for Doubtful Accts. Inventory Supplies Prepaid Rent Equipment Accumulated Depr. - Equipment Accounts Payable Interest Payable Notes Payable Salaries Payable Utilities Payable Common Stock APIC - Common Preferred Stock Retained Earnings Dividends Sales Revenue Gains (Other) Sales Discounts Sales Returns and Allowances Bad Debt Expense Depreciation Expense Interest Expense Maintenance & Repairs Expense Rent Expense Salary Expense Supplies Expense Tax Expense Utilities Expense Losses (Other) Credit Debit 863,400 42,800 800 173,000 7,400 33,000 285,000 Trial Balance December 31, 2021 Account Title Cash Accounts Receivable Allowance for Doubtful (Uncollectible) Accounts Inventory Supplies Prepaid Rent Equipment Accumulated Depreciation - Equipment Accounts Payable Income Taxes Payable Notes Payable Common Stock, $2 par value Additional Paid In Capital - Common Preferred Stock, $25 par value Retained Earnings Dividends Sales Revenue Sales Discounts Sales Returns and Allowances Gains Cost of Goods Sold Interest Expense Maintenance and Repair Expense Salary Expense Utilities Expense 12,000 104,800 4,000 90,000 150,000 215,000 175,000 59,000 10,000 950,000 17,000 12,000 5,000 237,000 2,400 2,400 73,400 5,200 1.764.800 1.764.800
