Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Subar Golden Wedding Dress Company designs custom wedding dresses for brides to be the person preparing the adjusting entries at year-end was unable to complete
Subar Golden Wedding Dress Company designs custom wedding dresses for brides to be the person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2020. year-end. Account Accounts receivable Accum. deprec., building Accum. deprec., equipment Advance sales Allowance for doubtful accounts Building Cash Equipment Estimated warranty is ability Unadjusted Balance Account $ 82,000 Land 128, 800 Merchandise inventory 344,088 Mortgage payable 228,000 Sarah Golden, capital 300 Note payable 439,000 Other operating expenses 88, 3e0 Sales 643, eer Salaries & admin expense 4.4e8 Sales returns and allowances Unadjusted Balance $ 133, eee 72, zee 227,749 219,091 162, eee 1,173,000 1,357, eee 31, 240 8,888 Other information: ho 1. Assume all accounts have a normal balance. 2. 75% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2021: the remaining 25% is from sales earned during 2020. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%. 5-year note payable was issued on October 1, 2020; interest is payable annually each September 30. 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9,110 interest and $24.469 principal for a total of $33.579. 6. Uncollecuble accounts are estimated to be 1.5% of outstanding receivables. 7. A physical count of the inventory showed a balance actually on hand of $62,800
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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