Presented below is the December 31 trial balance of Sunland Boutique. SUNLAND BOUTIQUE TRIAL BALANCE DECEMBER 31 Debit Credit $20,100 39,800 $717 80,410 5,350 91,000 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory, December 31 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable fommon Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense (sales) Advertising Expense Salaries and Wages Expense (administrative) Supplies Expense 35,600 27,530 74,607 10,990 705,086 476,900 61,200 6,790 67,600 5,380 $854,530 $854,530 Cash Inventory Prepaid Insurance Common Stock Salaries and Wages Expense (Sales) Retained Earnings Accounts Receivable Equipment Notes Payable Sales Revenue Accounts Receivable Equipment Notes Payable Sales Revenue Advertising Expense Supplies Expense Cost of Goods Sold Allow. for Doubtful Accts. Accum. Depr.-Equipment Salaries and Wages Expense (Administrative) 1. 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 for the amounts.) Bad debt expense is estimated to be $1.424. Equipment is depreciated based on a 7-year life (no salvage value). Insurance expired during the year $2,756. Interest accrued on notes payable $3,126. Sales salaries and wages earned but not paid $2,226. Advertising paid in advance $717. Office supplies on hand $1,630, charged to Supplies Expense when purchased. 3. 4 5. 6. 7 No. Account Titles and Explanation Debit Credit 1. 2. 3. 4 1 5 Post adjusting journal entries to the T-accounts. Bal. Cash 20,100 Inventory 80,410 Prepaid Insurance Bal. Bal. 5,350 Common Stock 74,607 Bal. Salaries and Wages Expense (Sales) 61,200 Bal. Bad Debt Expense Interest Payable Supplies Retained Earnings Bal. 10,990 Accounts Receivable Bai. 10,990 Bal. Bal. Accounts Receivable 39,800 Equipment 91,000 Notes Payable Bal. Sales Revenue Bal. Advertising Expense 27,530 705,086 Bal. 6,790 Supplies Expense Bal. 5,380 Depr. Exp. V Salaries and Wages Payable Bal. Cost of Goods Sold 476,900 Allow.for Doubtful Accts. Bal. 717 Bal. Cost of Goods Sold 476,900 Allow. for Doubtful Accts. Bal. 717