Sinfully Sweet Desserts

Unadjusted Trial Balance

December $31,2030$

Adjusting & Other Entries:

December $31$: In reviewing the bank statement, we find that during December, $$2,100$ in revenue was

incorrectly debited to inventory instead of cash $($the credit was correct$).$

December $31$: Determine that we earned $($but haven't received$)$ $$21,300$ in interest revenue on our savings

account during the year.

December $31$: We earned $$9,900$ in sweets sales revenue during December $2030$ that was paid for in

advance by our customers. The cost of those sweets was $$3,900.$ Prepare entries to record

both the sale and cost of goods sold. Record both entries.

December $31$: Entire year's advertising $($$$1,200$ per month$)$ was paid in advance on January $1,2030$

$($recorded in January$)-$ one month of Prepaid Advertising remains to be recorded as

Advertising Expense.

December $31$: Determined that $$3,000$ of supplies were used during the year.

December $31$: December utilities are $$1,999.$ The bill will be paid in January $2031.$ Utilities Expense and

Utilities Payable should be recorded.

December $31$: The company has not recorded bad debt expense for $2030.$ Sinfully uses the Aging $($or $\%)$ of

Receivables approach and estimates that the ending balance in the Allowance for Bad Debts

should be $$5,900($Hint: Look at Chapter $8$ notes $-$ Aging or $\%$ of Receivables approach$).$

December $31$: The long$-$term note payable was recorded on August $1,2030.$ The interest and the note are

due on July $31,2035.$ Interest rate is $9\mathrm{.}5\%.$ Record $2030$ interest expense.

December $31$: Calculate Net Income Before Taxes and then record income taxes as $35\%$ of this number

$($use the Multiple$-$Step Income Statement$)-$ use this tax # to record the final adjusting entry

for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in

your Multiple$-$Step Income Statement. Note $$ The taxes will be paid in March $2031.$

December $31$: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also

record an entry for a $$12,000$ dividend payment that the company made to its shareholders.

$($Debit Dividends & Credit Cash$).$ This entry will not affect the tax entry above, as Dividends

are not recorded on the Income Statement $($but instead reduce RE on the Statement of RE$).$