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Use the unadjusted trial balance of Electric Bike on December 31, 2020 Ccedit Cash 2.300 Accounts receivable 21.365 Merchandise inventory 33.800 otore supplies 2,015 ottice supplies 955 Prepaid insurance 5.055 Equipment 65,690 Acumulated depreciation, equipment $ 12,055 Accounts payable 7,200 salaries payable Baden 1. capital 157025 Brandon ti withdrawal 50.000 Interest Income 230 Salon 525,000 valor toturns and allowances 1.220 coat of goods sold 300,000 salaris expense $5.500 Rent 20.30 Happlier expense Depreciation expense equipment tande sense O Tebal 6703, 1105703, 110 Required: 1. Record adjusting entries for the following information The records show that the equipment wos estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $13,690 b. The balance in the Prepaid Insurance account was reviewed and it was determined that $345 was unused at December 31, 2020 c. A review of the store fupplies on December 31, 2020. revealed a balance on hand of $1760. a similar examination of the office supplies showed that $730 had been used d. Accrued salaried payable, $1400 e. A count of the merchandise inventory revealed a balonce on hand December 31, 2020 of 3300 Problem 5-3A Journal entries for merchandising activities--perpetual LO3 The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box Use a separate account for each receivable and payable, for example, record the purchase on August 1 in Accounts Payable Luu Company Aug. 1 Purchased necklaces from Luu Company for $3,000 under credit terms of 2/10, 1/30, ros destination 4 At Luu Company's request, paid $250 for freight charges on the August 1 purchase, reducing the amount owed to Lau. 5 Sold rings to Green Ruby for $3,200. under credit terms of 3/10, 1/60, FOB destination. The merchandise had coat $1.970. Purchased bracelets from Jane Co. for $4,200 under credit term of 2/10, n/45, POS shipping point. 9 Paid $225 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $340 and been sold for $700. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on august 5, received a credit nemo from Jane granting a price reduction of $500. 15 Received balance due from Green Ruby for the ruguat 5 wale. 17 Purchased office equipment from Westco on credit, $5.000, 6/45. 1e paid the amount due Jane Go for the Auguste parchase. 19 old carringe to Chie Jewellery for $2,800 under credit term of 2/10. n/10. POH shipping point. The merchandise bad cost $1.190. 22 Chic Jewellery requested price reduction on the August 19 ale because the merchandise did not meet opecificacions sont chia Jewellery & credit nemo for $200 resolve the issue 29 Feceived chic Jewellery payment of the amount de tres the august purchase. 20 Paid tuu Company the sount due from the August I purchase Prepare General Journal entries to record the above transactions View transaction lit Use the unadjusted trial balance of Electric Bike on December 31, 2020 Ccedit Cash 2.300 Accounts receivable 21.365 Merchandise inventory 33.800 otore supplies 2,015 ottice supplies 955 Prepaid insurance 5.055 Equipment 65,690 Acumulated depreciation, equipment $ 12,055 Accounts payable 7,200 salaries payable Baden 1. capital 157025 Brandon ti withdrawal 50.000 Interest Income 230 Salon 525,000 valor toturns and allowances 1.220 coat of goods sold 300,000 salaris expense $5.500 Rent 20.30 Happlier expense Depreciation expense equipment tande sense O Tebal 6703, 1105703, 110 Required: 1. Record adjusting entries for the following information The records show that the equipment wos estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $13,690 b. The balance in the Prepaid Insurance account was reviewed and it was determined that $345 was unused at December 31, 2020 c. A review of the store fupplies on December 31, 2020. revealed a balance on hand of $1760. a similar examination of the office supplies showed that $730 had been used d. Accrued salaried payable, $1400 e. A count of the merchandise inventory revealed a balonce on hand December 31, 2020 of 3300 Problem 5-3A Journal entries for merchandising activities--perpetual LO3 The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box Use a separate account for each receivable and payable, for example, record the purchase on August 1 in Accounts Payable Luu Company Aug. 1 Purchased necklaces from Luu Company for $3,000 under credit terms of 2/10, 1/30, ros destination 4 At Luu Company's request, paid $250 for freight charges on the August 1 purchase, reducing the amount owed to Lau. 5 Sold rings to Green Ruby for $3,200. under credit terms of 3/10, 1/60, FOB destination. The merchandise had coat $1.970. Purchased bracelets from Jane Co. for $4,200 under credit term of 2/10, n/45, POS shipping point. 9 Paid $225 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $340 and been sold for $700. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on august 5, received a credit nemo from Jane granting a price reduction of $500. 15 Received balance due from Green Ruby for the ruguat 5 wale. 17 Purchased office equipment from Westco on credit, $5.000, 6/45. 1e paid the amount due Jane Go for the Auguste parchase. 19 old carringe to Chie Jewellery for $2,800 under credit term of 2/10. n/10. POH shipping point. The merchandise bad cost $1.190. 22 Chic Jewellery requested price reduction on the August 19 ale because the merchandise did not meet opecificacions sont chia Jewellery & credit nemo for $200 resolve the issue 29 Feceived chic Jewellery payment of the amount de tres the august purchase. 20 Paid tuu Company the sount due from the August I purchase Prepare General Journal entries to record the above transactions View transaction lit
