Question
Step 6: On September 30, the following adjustments must be made: 1. record insurance used for the year 2. actual baking supplies on hand as
Step 6:
On September 30, the following adjustments must be made:
1. record insurance used for the year
2. actual baking supplies on hand as of September 30 is $1100
3. misc. supplies on hand as of September is $50
I have the following entries:
I have the following entries:
| Unadjusted trial balance | ||
| Account | Debit | Credit |
| Cash | 47,896.75 | |
| Baking Supplies | 20,500.00 | |
| Merchandise Inventory | 175.65 | |
| Prepaid Rent | 1,500.00 | |
| Prepaid Insurance | 1,200.00 | |
| Baking Equipment | 5,000.00 | |
| Misc. Supplies | 600.00 | |
| Accounts Receivable | 10,300.00 | |
| Notes Payable | 10,000.00 | |
| Accounts Payable | 7,000.00 | |
| Wages Payable | 480.00 | |
| Common Stock | 20,000.00 | |
| Dividends | 3,000.00 | |
| Bakery Sales | 60,000.00 | |
| Merchandise Sales | 221.00 | |
| Baking Supplies Expense | ||
| Rent Expense | 4,500.00 | |
| Insurance Expense | ||
| Misc. Expense | 250.00 | |
| Business License Expense | 375.00 | |
| Advertising Expense | 200.00 | |
| Wages Expense | 1,956.00 | |
| Telephone Expense | 90.00 | |
| COGS | 157.60 | |
| Depreciation Expense | ||
| Accumulated Depreciation | ||
| Misc Supplies Expense* | ||
| Interest Expense* | ||
| Interest Payable* | ||
| 97,701.00 | 97,701.00 |
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