Problem 12.5A Recording adjustments and completing the worksheet. LO 12-1, 12-2, 12-3, 12-4 Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm's general ledger contained the accounts and balances that follow. $ 29, 300 Or. 34,400 Dr. 340 Cr. 85,200 Dr. 9,600 Or rences 8,200 Dr. 2,570 kr. 23,200 Dr. 8,900 Cr 28,000 Cr. 11,400 Cr. ACCOUNTS AND BALANCES Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Insurance Office Equipment Accun. Depreciation Office Equipment Warehouse Equipment Accum. Depreciation-Warehouse Equipment Notes Payable Bank Accounts Payable Interest Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker, Capital Phillip Tucker, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Income Summary Rent mense 1,600 Cr. 380 Cr. 95,872 Cr. 52,000 Dr. 645,778 Cr. 9,200 Dr. 346,00 Dr. 8,400 Cr. 35..20 $ 29, 300 Dr. 34,400 Dr. 340 Cr. 85,200 Dr. 9,600 Dr. 4,440 Dr. 8,200 Dr. 2,570 Cr. 23,200 Dr. 8,000 Cr. 28,000 Cr. 11,400 Cr. yable 1,600 Cr. 389 Cr. Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Insurance Office Equipment Accum. Depreciation Office Equipment Warehouse Equipment Accum. Depreciation-Warehouse Equipment Notes Payable-Bank Accounts Payable Interest Payable ! Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker, Capital Phillip Tucker, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Income Summary Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Supplies Expense Insurance Expense Depreciation Expense-Office Equip. Depreciation Expense-Warehouse Equip. Uncollectible Accounts Expense Interest Expense 95,872 Cr. 52,000 Dr. 645,778 Cr. 9,200 Dr. 346,000 Dr. 8,400 Cr. 35,200 Dr. 1,400 Dr. 152,000 Dr. 12,200 Dr. oints eBook ADJUSTMENTS a.-b. Merchandise inventory on December 31, 2019, is $77,200. c. During 2019, the firm had net credit sales of $552,000: past experience indicates that 0.50 percent of these sales should result in uncollectible accounts. d. On December 31, 2019, an inventory of supplies showed that items costing $1100 were on hand. e. On May 1, 2019, the firm purchased a one-year insurance policy for $4.440. f. On January 2, 2017, the firm purchased office equipment for $8,200. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $490. g. On January 2, 2017, the firm purchased warehouse equipment for $23,200. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $3,200. h. On November 1, 2019, the firm issued a four-month, 12 percent note for $28,000. i. On December 31, 2019, the firm owed salaries of $14,000 that will not be paid until 2020. J. On December 31, 2019, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $14,000 of accrued wages. k. On December 31, 2019, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $14,000 of accrued wages. References Required: 1. Prepare the Trial Balance section of a 10 column worksheet. The worksheet covers the year ended December 31, 2019 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. Complete the worksheet. Analyze: When the financial statements for Healthy Eating Foods Company are prepared, what net income will be reported for the period ended December 31, 2019