Prepare the 12 regular journal entries on the #1 General Journal Post to the #1 General Ledger Create the #1 Unadj Trial Balance

Supply Co started with the following balances: Cash $101,100; Common Stock $87,100; Retained Earnings $14,000 (See General Ledger)

1. 1/10/2021 Purchased 2,300 units of inventory at $7 per unit with terms 2/10, n/60. Also pays $250 in cash for freight to have items shipped.
2. 1/15/2021 Sold 1,000 units in inventory at $12 per unit under terms 3/45, n/60. Goods cost $7 per unit.
3. 1/20/2021 Paid amount owed for inventory purchased on 1/10/2021.
4. 1/27/2021 100 units returned because they did not fit the customers needs (invoice amount: $1,200). Supply Co. returns the units, which cost $700, to its inventory.
5. 2/1/2021 Borrowed $10,000 at 12% annual interest to be repaid 1/26/2022.
6. 2/1/2021 Buyer discovers that 100 units are scuffed but are still of use and keeps the units. Supply Co. gives a price reduction (allowance) and credits accounts receivable for $200 to compensate for the damage.
7. 2/9/2021 Receives payment of inventory sold on 1/25/2021.
8. 2/12/2021 Purchased supplies of $2,500 on account.
9. 2/28/2021 Purchased inventory of 3,500 units at $13 per unit in cash. Freight was paid by seller.

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Prepare the adjusting entries on #2 Adj Entries General Journal Post to the #2 Adj Entries General Ledger Create the #2 Adjusted Trial Balance Prepare the #2 Financial Stmts

#2 General Journal for the year ended March 31, 2021

1. Adjust prepaid insurance to comply with the matching principle. Insurance was purchased on 3/1/2021 and covered one year period.
2. Adjust unearned revenues to comply with revenue recognition principle. Delivered product to customer who paid in December.
3. Adjust 3/31/2021 interest expense to comply with the matching principle.
4. Adjust 3/31/2021 utilities expense to comply with the matching principle. Assume a $500 bill for March 2021 utilities was received but is not yet paid.
5. Adjust inventory and cost of goods sold to comply with expense recognition principle. Assume you complete physical inventory count and inventory was $300 lower than reported.
6. Adjust supplies expense to comply with matching principle. Assume at March 31, 2021 supplies on hand were $950.
7. Adjust depreciation expense for the year for equipment purchased on 3/1/2021.