Presented below is the December 31 trial balance of Sheridan Boutique.

SHERIDAN BOUTIQUE TRIAL BALANCE DECEMBER 31
		Debit		Credit
Cash		$26,200
Accounts Receivable		42,000
Allowance for Doubtful Accounts				$660
Inventory, December 31		82,270
Prepaid Insurance		6,650
Equipment		91,000
Accumulated DepreciationEquipment				37,270
Notes Payable				29,300
Common Stock				80,223
Retained Earnings				9,890
Sales Revenue				701,667
Cost of Goods Sold		477,500
Salaries and Wages Expense (sales)		56,000
Advertising Expense		6,850
Salaries and Wages Expense (administrative)		65,350
Supplies Expense		5,190
		$859,010		$859,010

Please complete the below:

1. Construct T-accounts and enter the balances shown.

2. 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 0 for the amounts.)

1.		Bad debt expense is estimated to be $1,469.
2.		Equipment is depreciated based on a 7-year life (no salvage value).
3.		Insurance expired during the year $2,392.
4.		Interest accrued on notes payable $3,061.
5.		Sales salaries and wages earned but not paid $2,253.
6.		Advertising paid in advance $660.
7.		Office supplies on hand $1,500, charged to Supplies Expense when purchased.

3. Post to the T-accounts.

4. 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 0 for the amounts.)

5. Post closing entries.