Problem 13.4A. Obtain all data that is necessary from the worksheet prepared for Healthy Eating Foods Company in Problem 12.5A at the end of Chapter 12. Then follow the instructions to complete this problem.

Instructions:

1. Record adjusting entries in the general journal as of December 31, 2016. Include descriptions.
2. Record closing entries in the general journal as of December 31, 2016. Include descriptions.
3. Record reversing entries in the general journal as of January 1, 2017. Include descriptions.

Analyze: Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

ANSWER TO PROBLEM 12.5A BELOW:

Healthy Eating Foods Company Worksheet For the year ended December 31, 2016
Accounts	Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	30,100				30,100				30,100
Accounts Receivable	35,200				35,200				35,200
Allowance for Doubtful Accounts		420		2,800 (c)		3,220				3,220
Merchandise Inventory	86,000				86,000		86,000	78,000 (a)	78,000
Supplies	10,400			9,220 (d)	1,180				1,180
Prepaid Insurance	5,400			3,600 (e)	1,800				1,800
Office Equipment	8,300				8,300				8,300
Accumulated Depreciation: Office Equipment		2,650		1,325 (f)		3,975				3,975
Warehouse Equipment	28,000				28,000				28,000
Accumulated Depreciation: Warehouse Equipment		9,600		4,800 (g)		14,400				14,400
Notes Payable: Bank		32,000				32,000				32,000
Accounts Payable		12,200				12,200				12,200
Interest Payable		0		640 (h)		640				640
Social Security Tax Payable		1,680		310 (j)		1,990				1,990
Medicare Tax Payable		388		72.5 (j)		460.5				460.5
Federal Unemployment Tax Payable		0		30 (k)		30				30
State Unemployment Tax Payable		0		270		270 (k )				270
Salaries Payable		0		5,000		5,000(i)				5,000
Phillip Tucker, Capital		108,684				108,684				108,394.5
Phillip Tucker, Drawing	56,000				56,000				0
Sales		653,778				653,778		653,778
Sales Returns and Allowances	10,000				10,000		10,000
Purchases	350,000				350,000		350,000
Purchase Returns and Allowances		9,200				9,200		9,200
Income Summary
Rent Expense	36,000				36,000		36,000
Telephone Expense	2,200				2,200		2,200
Salary Expense	160,000		5,000 ( i)		165,000		165,000
Payroll Tax Expense	13,000		682.5 (j-k)		13,682.5		13,682.5
Supplies Expense	0		9,220 (d)		9,220		9,220
Insurance Expense	0		3,600 (e)		3,600		3,600
Depreciation Expense: Office Equipment	0		1,325 (f)		1,325		1,325
Depreciation Expense: Warehouse Equipment	0		4,800 (g)		4,800		4,800
Uncollectible Accounts Expense	0		2,800 (c)		2,800		2,800
Interest Expense	0		640 (h)		640		640
Totals			28,067.5	28,067.5			685,267.50	740,978	182,580	182,580