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Q No.2: Gulistan textile mills, INC. (9) TRIAL BALANCE DECEMBER 31,2020 TITLE OF ACCOUNT DEBIT CREDIT Cash 110,350 Account receivable 54600 Note receivable 83,000 Land

Q No.2: Gulistan textile mills, INC. (9)

TRIAL BALANCE

DECEMBER 31,2020

TITLE OF ACCOUNT

DEBIT

CREDIT

Cash

110,350

Account receivable

54600

Note receivable

83,000

Land

100,000

Inventory-opening

40,500

Supplies

650

Prepaid insurance

1200

Furniture and Fixture

83,200

Accumulated depreciation-furniture

2400

Account payable

47,000

Note payable (long-term)

12,600

Capital-Frank

175,000

Sales revenue

338,000

Sales discount

1400

Sales return and allowance

2000

Interest revenue

600

Purchases

89,300

Purchases discount

3000

Purchases return and allowances

1200

Freight in

5200

Rent expense

8400

TOTAL

579,800

579,800

ADJUSTMENT DATA:

  1. Interest revenue earned but not yet collected Rs. 900, & Supplies on hand Rs. 300
  2. Insurance expired during the year Rs. 1000 & Depreciation for the year Rs. 600
  3. Interest expense incurred but not yet paid Rs. 200
  4. Inventory on hand at the end of the year Rs. 42,000
  5. 5% of A/c Receivable is estimated to be uncollectible.

INSTRUCTIOS: Prepare Adjusting entries, adjusting Trial Balance and Income statement.

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