Question
Salem trading company unadjusted trial balance Dec 31, 2016 ( The Total for Debits and Credits ) 769,300 769,300 1. Bad debt expense is estimated
Salem trading company unadjusted trial balance Dec 31, 2016
( The Total for Debits and Credits ) | 769,300 | 769,300 |
1. Bad debt expense is estimated to be $1680
2. Equipment is depreciated based on a 7-year life (no salvage value)
3. Ishurance expired during the year $2975
4. Interest accrued on notes payable $2360
5. Sales salaries and wages earned but not paid $3000
6. Office supplies on hand $2000
a) Construct T-accounts and enter the balances shown
b) Prepare adjusting journal entries for the following and post to the T-accounts. (Omit Explanations)
Open Additional T-accounts as necessary. ( The bookes are closed yearly on December 31.)
c) Prepare an adjusted trial balance
d) Prepare an income statement for 2016 and a balance sheet as of December 31, 2016
e) Prepare and post closing entries
f) Prepare a post-closing trial balance
Cash Accounts Receivable Allowance for Doubtful Accounts Inventory, Dec 31 Prepaid insurance Prepaid Supplies Equipment Accumulated Depretiation Equipment Notes Payable Common Stock Retained Earnings Sales Revenue Cost Of Good Sold Salaries and Wages Expense (sales) Advertising Expense Salaries and Wages Expense (administrative) Debit $25,500 40,000 80,000 5,100 5,000 84,000 408,000 50,000 6,700 65,000 Credit 700 35,000 35,000 80,600 10,000 608,000Step by Step Solution
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