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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. This is the balances from General Ledger 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
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