Question
Step 5: Prepare the Worksheet Enter the balances from the General Ledger in Trial Balance columns of the worksheet. Enter the adjusting entries based on
Step 5: Prepare the Worksheet Enter the balances from the General Ledger in Trial Balance columns of the worksheet. Enter the adjusting entries based on the information below and then complete the worksheet. Accrued salaries on December 31 are $280 for Office employees and $500 for Sales employees. Supplies on hand on Dec. 31 were $1,370. Insurance policies which have not expired at the end of the year total $2,200. The end of year physical inventory count showed that there is $94,927 of inventory on hand. The annual depreciation that needs to be recorded on Office Equipment is $2,180. The annual depreciation that needs to be recorded on the Building is $4,600. The company estimates that $900 of the accounts receivable balance as of Dec. 31 will not be collected. Unearned rent revenue that has been earned as of Dec. 31 is $4,300. Interest accrued on the long-term note during December is $260.
| Trial Balance | ||
| Cash | 59,005.50 | |
| Petty Cash | 200.00 | |
| Accounts Receivable | 39,980.95 | |
| Allow for Doubtful Accts | 601.82 | |
| Notes Receivable | - | - |
| Interest Receivable | - | - |
| Merchandise Inventory | 96,751.50 | |
| Supplies | 5,623.20 | |
| Prepaid Insurance | 3,700.00 | |
| Land | 28,000.00 | |
| Buildings | 125,000.00 | |
| Accum Deprec-Buildings | 46,580.00 | |
| Office Equipment | 19,885.00 | |
| Accum Deprec-Office Equip | 7,310.00 | |
| Accounts Payable | 30,313.20 | |
| Salaries Payable | - | - |
| Sales Tax Payable | 1,059.48 | |
| Interest Payable | - | - |
| Short-Term Notes Payable | - | - |
| Unearned Rent | 4,900.00 | |
| Fed. Inc. Tax Payable | 1,490.00 | |
| FICA Tax Payable | 2,503.08 | |
| United Way Contrib Pay | 420.00 | |
| Fed. Unemploy Tax Pay | 365.92 | |
| State Unemploy Tax Pay | 340.39 | |
| Long-Term Note Payable | 34,000.00 | |
| Jeff Jones, Capital | 44,245.49 | |
| Jeff Jones, Drawing | 30,000.00 | |
| Income Summary | - | - |
| Sales | 931,515.08 | |
| Sales Returns & Allow | 7,680.76 | |
| Sales Discounts | 5,965.23 | |
| Cost of Goods Sold | 449,365.25 | |
| Sales Salaries Expense | 100,342.16 | |
| Advertising Expense | 5,670.00 | |
| Delivery Expense | 3,666.20 | |
| Bad Debt Expense | - | - |
| Misc Selling Exp | 1,359.36 | |
| Office Salaries Expense | 65,463.58 | |
| Supplies Expense | - | - |
| Insurance Expense | - | - |
| Utilities Expense | 8,352.30 | |
| Telephone Expense | 1,927.00 | |
| Internet Expense | 2,249.00 | |
| Payroll Tax Expense | 25,873.25 | |
| Misc. General Expense | 14,835.00 | |
| Deprec Exp - Building | - | - |
| Deprec Exp-Office Equip | 380.00 | |
| Interest Revenue | 812.00 | |
| Rent Revenue | - | - |
| Gain on Plant Assets | 220.00 | |
| Interest Expense | 4,822.50 | |
| Loss on Plant Assets | 500.00 | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started