Tanya started her business on April.2019
I provide unadjusted trail balance .
Please adjusting entries in General Journal and prepare adjusted trial balance
Tanya would like you to prepare all necessary adjusting entries in Excel in the general journal and post them to the trial balance worksheet, linking the trial balance worksheet 'Adjusting entries' column to the general journal (using) She will then have her bookkeeper record them into their general ledger and subledgers later. Tanya provides you with the following information: 1. Accounts Receivable -$2,400 of the accounts receivable balance, from lama Baddebt, needs to be written off. The bookkeeper was not sure of how to do this entry so you will do it as an adjusting entry. In addition, after the write off, Tanya estimates that $21,000 of her accounts receivable will not be collected in the future and needs you to prepare the adjusting entry 2. Office Supplies, Prepaid Insurance, and Prepaid Rent-Tanya advises that the business had $11,000 of office supplies left on hand at March 31, 2019, that $8,200 of the prepaid insurance has expired, and that the remaining prepaid rent balance should be a $1,500 deposit for the final month of the lease. 3. Note Payable-the note had an introductory interest rate of 3% until December 31, 2018, at which time the business paid $13,500 for interest from April 1, 2018 (date of loan) to December 31, 2018. The note now has an interest rate of 5.5% which will be paid on December 31, 2019, Tanya needs you to prepare any necessary adjusting entry to March 31, 2019 to accrue interest owing for the three months. 4. Unearned revenue - Tanya advises that the uneamed revenue is for prepayments received from customers before they pick-up their jewelry. By March 31, 2019, $82,000 of the unearned revenue has been earned, with customers purchasing jewelry that had a total original cost of $50,000. She needs you to record the earning of these sales and the expensing of the sold jewelry, which is still incorrectly on her books as inventory. Accounting 110 Financial Accounting Assignment #2 5. Inventory purchase and sales - Tanya's bookkeeper was not sure how to record a recent purchase of inventory and a sale of inventory, both which received a discount. It was the first time that the business had used discounts so the bookkeeper was not sure of the entries. Tanya would like you to record these entries as adjusting entries as they have not yet been recorded on her books. On March 10, 2019, the business purchased $60,000 of inventory on account, terms 2/10.n/30. The business paid for the inventory on March 19, less the discount. . On March 21, 2019, Tanya sold inventory that cost $50,000 to one of her best customers for 75,000 on account, with the terms 57, n30. The customer paid for the purchase in full on March 23 and received the discount 6. Amortization - Tanya advises you that the store equipment has a 15 year useful life, with a residual value of $12,000. Tanya would like to use the straight-line method. For the office equipment, she expects it will also have a 10 year useful life, with a residual value of $45,000 but she would like to use the double- declining balance method. Both the store and office equipment were purchased on April 1, 2018. 7. Salaries -Tanya advises that at March 31, 2019, the company owed an additional $12,000 in salaries that were paid in April. She indicated that you do not need to worry about El, CPP, etc as her bookkeeper will calculate the withholdings. An adjusting entry is needed however to accrue the salaries owed to March 31, 2019. Unadjusted Trial Balance Cr Dr 161,250 Cash Accounts Receivable Allowance for doubtil accounts 363,000 525,000 Inventory Oce Supplies Prepaid Insurance Prepaid Rent Ofice Equipment Accumulated Amortization-Office Equipment Store Equipment Accumulated Amortization Store Equipment Accounts Payable Salaries Payable Unearned Revenue Note Payable- long term Tanya Xavier, Capital Tanya Xavier, Withdrawals Sales revenue Sales discounts 16,800 10,200 11,500 255,000 759,000 7,200 166,800 600,000 105,000 3,687,050 Cost of Goods Sold Expense Salaries Expense Advertising Expense Amortization Expense. Ofice Equipment Amortization Expense- Store Equipment Bad Debts Expense Insurance Expense Interest Expense Oce Supplies Expense Rent Expense Telephone Expense 2,325,000 519,000 200,700 13,500 3,200 94,050 3,400 Balance 5,365,600 5,365,600
