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The following trial balance before adjustments is for Blossom Ltd. on December 31, 2024: Debits Credits Cash Inventory $ 12,600 34,860 Advances to employees
The following trial balance before adjustments is for Blossom Ltd. on December 31, 2024: Debits Credits Cash Inventory $ 12,600 34,860 Advances to employees 2,520 Supplies 3,780 Equipment 56,000 Accumulated depreciation, equipment $4,000 Deferred revenue Bank loan payable 7,560 25,200 Common shares Retained earnings 40,000 11,340 Sales revenue 289,800 Cost of goods sold 163,800 Wages expense 42,840 Repairs and maintenance expense 31,500 Rent expense 7,700 Miscellaneous expense 18,900 Dividends declared 3,400 Totals $377,900 $377,900 Data for adjusting entries: 1. As at December 31, 2024, 80% of the wages that had been paid in advance to the salespeople had been earned. 2. A count of the supplies at year end revealed that $600 of supplies were still on hand. 3. Depreciation on the equipment for 2024 was $1,000. 4. The deferred revenue was advance receipts for future deliveries of goods. By December 31, 2024, two-thirds of these deliveries had been made. 5. The bank loan was a six-month loan taken out on October 1, 2024. The interest rate on the loan is 8%, but the interest is not due to be paid until the note is repaid on April 1, 2025. 6. Wages owed at year end and not yet recorded were $500. 7. The rent expense figure includes $700 paid in advance for January 2025. 8. Income tax for the year should be calculated using a tax rate of 25%. (Hint: After you finish the other adjusting entries, determine the income before income tax and then calculate the tax as 25% of this amount.) No. Account Titles and Explanation 1. 2. 3. 4. 5. 6. 7. 8. Debit Credit
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