rences The unadjusted trial balance of Ayayai Enterprises for the year ending December 31, 2021, follows: Orations LUS Support Credit $35,000 AYAYAI ENTERPRISES Trial Balance December 31, 2021 Debit Cash $15,000 Accounts receivable 19,200 Merchandise inventory 37,050 Prepaid insurance 3,000 Supplies 2.950 Equipment 150,000 Accumulated depreciation-equipment Furniture 45,000 Accumulated depreciation-furniture Accounts payable Unearned revenue Mortgage payable S. Kim, capital S. Kim, drawings 48,000 Sales Sales returns and allowances 2,500 Sales discounts 3,275 Cost of goods sold 153,000 6,875 Interest expense Salaries expense 35,450 5,100 Utilities expense $526,400 18,000 33,200 4,000 125,000 46,200 265,000 $526,400 discounts Cost of goods sold Interest expense Salaries expense Utilities expense 2,500 3,275 153,000 6,875 35,450 5,100 $526,400 $526,400 Additional information: 1. There is $750 of supplies on hand on December 31, 2021. 2. The one-year insurance policy was purchased on March 1, 2021. 3. Depreciation expense for the year is $10,300 for the equipment and $4,500 for the furniture. 4. Accrued interest expense at December 31, 2021, is $700, 5. Unearned revenue of $800 is still unearned at December 31, 2021. On the sales that were earned, cost of goods sold was $2.650. 6. A physical count of merchandise inventory indicates $32,050 on hand on December 31, 2021. 7. Global uses the perpetual inventory system and the earnings approach. Your answer is partially correct. Prepare the adjusting journal entries assuming they are prepared annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Credit Debit 2200 No. Date Account Titles and Explanation Sunplies Expense Desktop Prepare a single-step income statement. (Enter negative amounts using either a negative sign preceding the number parentheses e-g. (45)) AYAYAI ENTERPRISES Income Statement For the Month Ended December 31, 2021 Revenues Net Sales 268,200 Expenses Cost of Goods Sold Interest Expense Salaries Expense V Utilities Expense Depreciation Expense Insurance Expense Net Sales Total Expenses $ Total Revenues Your answer is partially correct. Prepare the closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Date Account Titles and Explanation Dec. 31 Sales Credit Income Summary (To close income statement account with credit balance.) Dec. 31 Income Summary Cost of Goods Sold Interest Expense Salaries Expense Utilities Expense Depreciation Expense Insurance Expense Supplies Expense (To close income statement accounts with debit balances.) Dec 31 Income Summary S. Kim, Capital (To close Income Summary account.) Dec. 31 S. Kim, Capital S. Kim, Drawings
