Prepare T accounts

Dresser Company
Balance Sheet
31-Dec-20
Assets:			Liabilities and Stockholders' Equity:
Current Assets:			Current Liabilities:
Cash	$ 12,300		Accounts Payable	$ 8,200
Accounts Receivable	15,720		Interest Payable	2,000
Less Allowance for Doubtful Accounts	(7,210)		Salary and Wages Payable	400
Inventory **	11,580		Total Current Liabilities	$ 10,600
Prepaid Insurance	2,000
Supplies	590		Long Term Liabilities:
Total Current Assets	$ 34,980		Bonds Payable, 8%, 10 year ***	$ 50,000
Property, Plant and Equipment:
Building	$ 100,000		Total Liabilities	$ 60,600
Less Accumulated Depreciation	(30,000)
Equipment	60,000		Stockholders' Equity:
Less Accumulated Depreciation	(35,855)		Common Stock	$ 55,000
Total Property, Plant and Equipment	$ 94,145		Retained Earnings	13,525
			Total Stockholders' Equity	$ 68,525
Total Assets	$ 129,125		Total Liabilities and Stockholders' Equity	$129,125
**Inventory balance is:			*** Interest payable Jan. 1 and July 1
4000 units at $1.50 each	$ 6,000
3600 units at $1.55 each	5,580
Total Inventory	$ 11,580

Journal Entries JE # Account Names Debit Credit

1 Interest Payable 2,000 Cash 2,000 2 Wages Payable 400 Wages Expense 550 Cash 950 3 Accounts Receivable 60,000 sales 60,000 4 supplies 1,300 Accounts payable 1,300 5 Inventory 3,200 Accounts Payable 3,200 6 Accounts Receivable 41,600 Sales 41,600 7 Allowance for doubtful accounts 5,600 Accounts Receivable 5,600 8 Interest expense 2,000 Cash 2,000 9 Inventroy 4,050 Accounts Payable 4,050 10 Accounts Receivable 1,400 Allowance for doubtful accounts 1,400 cash 1,400 Accounts Receivable 1400 11 salaries and wages expesne 72,000 cash 72,000 12 Pre paid insurance 6,600 cash 6,600 13 Accounts Receivable 57,750 sales 57,750 14 cash 87,800 Accounts Receivable 87,800 15 inventroy 6,270 accounts payable 6,270 16 accounts payable 10,300 cash 10,300 17 cash 7,750 sales 7,750 18 selling expense 1,600 admin expense 3,850 cash 5,450 19 dividends 6,000 cash 6,000 20 notes receivable 55,000 sales 55,000 Adjusting Entry's 01-May Insurance expense 2,000 Prepaid insurance 2,000 2 Accounts payable 110 supplies 110 3 interest expense 6,600 cash 6,600 4 Interest expense 2,000 cash 2,000 5 Depreciation 7,382 AD- Equipment - 6 Depreciation 3,000 AD- Building 3,000 7 salary and wages Expense 800 Salary and wages payable 800 8 9 income tax expense 25,946 Income tax payable 25,946