prepare an adjusted trial balance

REQUIRED:

Balance day adjustments for the following:

a. Stock take indicates the inventory balance should be $1,412,000

b. Salaries and Wages due but not yet paid, $8,000

c. Depreciation not yet recorded for the year for Furniture & Fittings $54,000

d. Bad debts of $14,000 to be written off (by the indirect method)

e. Allowance for bad debts to be 5% of accounts receivable (also indirect)

Part

b. Prepare an adjusted Trial Balance - 10 marks Trial Balance of Tombstone Pty Ltd DR CR $ 000 $ 000 Sales 6,324 Inventory 1,422 Furniture and Fittings 570 Accumulated Depreciation - Furniture and 72 Fittings Accounts Receivable 414 Allowance for Bad Debts 18 Accounts Payable Bot Cash at Bank 1,476 Share Capital 809 Bank Loan 400 Cost of Goods Sold 3,522 Advertising 42 Salaries & Wages 366 Interest Expense 18 Total 7,830 7,830