Question
The following trial balance was taken from the books of Wildhorse Corporation on December 31, 2020. Account Debit Credit Cash $ 8,300 Accounts Receivable 41,300
The following trial balance was taken from the books of Wildhorse Corporation on December 31, 2020.
Account | Debit | Credit | ||||
Cash | $ 8,300 | |||||
Accounts Receivable | 41,300 | |||||
Notes Receivable | 11,900 | |||||
Allowance for Doubtful Accounts | $ 1,740 | |||||
Inventory | 36,200 | |||||
Prepaid Insurance | 4,280 | |||||
Equipment | 122,200 | |||||
Accumulated Depreciation--Equip. | 14,600 | |||||
Accounts Payable | 11,700 | |||||
Common Stock | 48,600 | |||||
Retained Earnings | 110,440 | |||||
Sales Revenue | 230,000 | |||||
Cost of Goods Sold | 128,300 | |||||
Salaries and Wages Expense | 52,000 | |||||
Rent Expense | 12,600 | |||||
Totals | $ 417,080 | $ 417,080 |
At year end, the following items have not yet been recorded.
a. | Insurance expired during the year, $ 2,030. | ||
b. | Estimated bad debts, 1% of gross sales. | ||
c. | Depreciation on equipment, 10% per year on original cost. | ||
d. | Interest at 6% is receivable on the note for one full year. | ||
e. | Rent paid in advance at December 31, $ 5,800 (originally charged to expense). | ||
f. | Accrued salaries and wages at December 31, $ 6,160. |
(a)
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Prepare the necessary adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
a. | |||
b. | |||
c. | |||
d. | |||
e. | |||
f. | |||
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List of Accounts
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(b)
Prepare the necessary closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
(To close revenue accounts) | ||
(To close expense accounts) | ||
(To close net income / (loss)) |
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