Required: 1. Prepare the adjustments 2. Prepare Balance Sheet, Income Statement and Statement of Changes in Equity

1. Inventory, End is $ 84,400 2. Office supplies used $3450 Unused store supplies $6000 3. 25% of Prepaid rent used Half expired prepaid insurance 4. Office equipment depreciates 10% per year store equipment has a useful life of 5 years

5. Accrued expenses Utilities $4320, Store salaries $3500 , Interest $16250

6. Allowance for bad debts is to be 10% receivables

Accounts:

Asset (All in debit except contra-accounts) Cash. 56,030 Accounts Receivable 110,400 Less: Allowance for bad debts 9,384 Office Supplies 9,300 Store supplies 8,231 Inventory, Beg. 98,500 Prepaid insurance 6,083 Prepaid rent 25,200 Office Equipment 142,300 Less: Accumulated depreciation - office equipt. 13,730 Store equipment 204,100 Less: Accum Dept. 40,820

Liabilities (All credit side) Accounts Payable 32,100 Notes Payable 250,000 Salaries Payable Utilities Payable Interest Payable

Owner's Equity (All credit except drawing) Jelu, Capital 167,475 Jelu, Drawing debit 7,500

Expense Purchases 155,240 dr. Freight in 23,286 dr. Purchase Return and Allowances cr. 2,300 Purchase Discount cr. 5,324 Sales 451,530 cr. Sales Return and Allowances Dr. 4,063 Sales Discount 8,540 Store Supplies expense Dr. 53,000 Office salaries expense Dr. 61,000 Rent Expense - Store Dept Expense - office Dept Expense - Store Utilities Expense - Office Bad debts expense Insurance expense Interest expense

ps. account title with no amounts are titles with adjustments

*prepare the adjustments *prepare the financial statement

Cash Accounts Receivable Allowance for Bad Debts Office Supplies Store Supplies Merchandise Inventory, beg Prepaid Insurance Prepaid Rent Office Equipment Accumulated Depreciation - Office Equipment Store Equipment Accumulated Depreciation - Store Equipment Accounts Payable Notes Payable Salaries Payable Utilities Payable Interest Payable Baha, Capital Baha, Drawing Purchases Freight-in Purchases Returns & Allowances Purchase Discount Sales Sales Returns and Allowances Sales Discount Store Supplies Expense TRIAL BALANCE debit credit 56,030.00 110,400.00 9,384.00 9,300.00 8,231.00 98,500.00 6,083.00 25,200.00 142,300.00 13,730.00 204,100.00 40,820.00 32,100.00 250,000.00 167,475.00 7,500.00 155,240.00 23,286.00 2,300.00 5,434.00 451,530.00 4,063.00 8,540.00 53,000.00 61,000.00 Store Salaries Expense Office Salaries Expense Rent Expense - Store Depreciation Expense - office Depreciation Expense - Store Utilities Expense - Office Bad debts Expese Insurance Expense Interest Expense 972,773.00 972,773.00