Question
Requirement 6. Post adjusting entries and prepare an adjusted trial balance. Start by posting the adjusting entries. The balance of the accounts that you calculated
Requirement 6. Post adjusting entries and prepare an adjusted trial balance.
Start by posting the adjusting entries. The balance of the accounts that you calculated in Requirement 3 have been entered for you. Post the adjusting entries using "Adj." and the applicable letter as the posting reference (Adj.(a) for adjusting entry(a), Adj.(b) for adjusting entry (b), and so on.). Compute each account's adjusted balance after posting the adjustments, and denote the balance as Bal. (For any accounts with a zero balance after posting the transactions, select a "Bal." reference and enter a "0" on the normal side of the T-account.)
I AM SO CONFUSED! how do I know which box to use for the adjustments?
Date Accounts Debit Credit Adj.(a) Insurance Expense 1,100 Prepaid Insurance 1,100 Adj. (b) Bad Debt Expense 31,000 Allowance for Bad Debts 31,000 873 Adj.(c) Supplies Expense Office Supplies Adj.(d) Interest Receivable 873 7,000 Interest Revenue 7,000 30,000 Adj.(e) Depreciation ExpenseBuilding Depreciation ExpenseStore Fixtures Depreciation Expense-Office Equipment 5,500 26,000 30,000 5,500 26,000 Adj.(e) Depreciation ExpenseBuilding Depreciation ExpenseStore Fixtures Depreciation Expense-Office Equipment Accumulated DepreciationBuilding Accumulated DepreciationStore Fixtures Accumulated DepreciationOffice Equipment Adj.(f) Amortization Expense-Franchise 30,000 5,500 26,000 5,600 Franchise 5,600 Adj.(g) 66,000 Interest Expense Interest Payable 66,000 Allowance for Bad Debts Common Stock Franchise Fee Expense 540,000 Bal. Bal. 127,500 Merchandise Inventory Retained Earnings Salaries Expense Bal. 143,000 Bal. 210,000 Date Accounts Debit Credit Adj.(a) Insurance Expense 1,100 Prepaid Insurance 1,100 Adj. (b) Bad Debt Expense 31,000 Allowance for Bad Debts 31,000 873 Adj.(c) Supplies Expense Office Supplies Adj.(d) Interest Receivable 873 7,000 Interest Revenue 7,000 30,000 Adj.(e) Depreciation ExpenseBuilding Depreciation ExpenseStore Fixtures Depreciation Expense-Office Equipment 5,500 26,000 30,000 5,500 26,000 Adj.(e) Depreciation ExpenseBuilding Depreciation ExpenseStore Fixtures Depreciation Expense-Office Equipment Accumulated DepreciationBuilding Accumulated DepreciationStore Fixtures Accumulated DepreciationOffice Equipment Adj.(f) Amortization Expense-Franchise 30,000 5,500 26,000 5,600 Franchise 5,600 Adj.(g) 66,000 Interest Expense Interest Payable 66,000 Allowance for Bad Debts Common Stock Franchise Fee Expense 540,000 Bal. Bal. 127,500 Merchandise Inventory Retained Earnings Salaries Expense Bal. 143,000 Bal. 210,000Step by Step Solution
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