Presented below is the December 31 trial balance of Bramble Boutique. BRAMBLE BOUTIQUE TRIAL BALANCE DECEMBER 31 Debit Credit Cash $20,500 Accounts Receivable 32,900 Allowance for Doubtful Accounts $677 Inventory, December 31 82,890 Prepaid Insurance 6,740 Equipment 91,000 Accumulated Depreciation-Equipment 35,730 Notes Payable 29,700 Common Stock 75,867 Retained Earnings 9,400 Sales Revenue 655,966 Cost of Goods Sold 423,900 Salaries and Wages Expense (sales) 65,800 Advertising Expense 7,540 Salaries and Wages Expense (administrative) 71,060 Supplies Expense 5,010 $807,340 $807,340 Construct T-accounts and enter the balances shown. Cash Inventory Prepaid Insurance Common Stock Salaries and Wages Expense (Sales) Retained Earnings Accounts Receivable Equipment Notes Payable Sales Revenue Advertising Expense Advertising Expense Supplies Expense Cost of Goods Sold Allow. for Doubtful Accts. Accum. Depr.-Equipment Salaries and Wages Expense (Administrative) Prepare adjusting journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 1. Bad debt expense is estimated to be $1,304. 2. Equipment is depreciated based on a 7-year life (no salvage value). 3. Insurance expired during the year $2.616. 4. Interest accrued on notes payable $3,126. 5. Sales salaries and wages earned but not paid $2,439. 6. Advertising paid in advance $677. 7. Office supplies on hand $1.510, charged to Supplies Expense when purchased. No. Account Titles and Explanation Debit Credit ri mi o N Post adjusting journal entries to the T-accounts. Bal. Cash 20,500 Inventory 82,890 Prepaid Insurance Bal. Bal. 6,740 Common Stock Bal. Salaries and Wages Expense (Sales) 75,867 Bal. 65,800 Bad Debt Expense Interest Payable Supplies Retained Earnings Bal. 9,400 Bal. Accounts Receivable 32,900 Equipment Bal. 91,000 Notes Payable Bal. 29,700 Sales Revenue Bal. 655.966 Advorticina Cynonco 655,966 Sales Revenue Bal. Advertising Expense 7,540 Bal. Supplies Expense Bal. 5.010 Depr. Exp. Salaries and Wages Payable Bal. Cost of Goods Sold 423,900 Allow. for Doubtful Accts. Accum. Depr.-Equipment Bal. 35,730 Interest Expense Insurance Expense Bal. Salaries and Wages Expense (Administrative) 71,060 Prepaid Advertising Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) Debit Credit No. Date Account Titles and Explanation 1. Dec. 31 (To close revenue account) 2. Dec. 31 (To close expense accounts) 3. Dec. 31 (To close net income / (loss)) Post closing entries. Bal. Bal. Cash 20,500 Inventory 82.8901 Prepaid Insurance 6,740 Adj. 4,124 Common Stock Bal. Bal. 75,867 Salaries and Wages Expense (Sales) 65,800 Bal. Adj. 2,439 Bad Debt Expense 1,304 3,126 Interest Payable Adj. Supplies 1,510 Retained Earnings 9,400 Bal. Accounts Receivable 32,900 Equipment 91,000 Notes Payable Bal. Sales Revenue 29,700 Bal. 655,966 Advertising Expense 7.540 Adj. Supplies Expense 5,010 Adj. 1.510 2,439 Depr. Exp. 13,000 Salaries and Wages Payable Adj. Cost of Goods Sold 423,900 Allow. for Doubtful Accts. Bal. Adj. 677 1,304 1,981 Accum. Depr.- Equipment Bal. Adi 35,730 13,000 48,730 Interest Expense Bal. 3,126 Insurance Expense 2,616 Bal. Salaries and Wages Expense (Administrative) 71,060 Prepaid Advertising 677 Income Summary Adj
