Present below is the December 31 trial balance of New York Boutique.

a. Construct T-accounts and enter the balances shown b. Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations) Open additional T-accounts as necessary (The books are closed yearly on December 31) 1. 2. 3. 4. 5. 6. 7. Bad debt expense is estimated to be $1,400. Equipment is depreciated based on a 7 year life (no salvage value). Insurance expired during the year $2,500. Interest accrued on notes payable $3,360. Sales salaries and wages earned but not paid $2,400. Advertising paid in advance $700. Office supplies on hand $1,500, charged to Supplies Expense when purchase. c. Prepare closing entries and post to the accounts. Please see below for additional instructions: Use Excel Label each sheet You do not have to prepare T-accounts You should have at least the following sheets: Data Sheet Adjusting entries (solutions will be provided on Sunday, 3/20 in the solutions manual) Adjusted trial balance Single-step income stmt. Multi-step income stmt. Retained earnings stmt. Classified balance sheet Closing entries (solutions are provided on Sunday, 3/20 in the solutions manual) Post-close trial balance New York Boutique Trial Balance - December 31 Debit Cash Accounts Receivable Allowance for Doubtful Accounts Inventory, December 31 Prepaid Insurance Equipment Accumulated Depreciation - Equipment Notes Payable Common Stock Retained Earnings Sales Revenue Costs of Goods Sold Salaries and Wages Expense (Sales) Advertising Expense Salaries and Wages Expense (administrative) Supplies Expense Credit 18,500 32,000 700 80,000 5,100 84,000 35,000 28,000 80,600 10,000 600,000 408,000 50,000 6,700 65,000 5,000 754,300 754,300