Question
The following trial balance was taken from the books of Fisk Corporation on December 31, 2014. Account Debit Credit Cash $ 9,000 Accounts Receivable 40,000
The following trial balance was taken from the books of Fisk Corporation on December 31, 2014.
| Account | Debit | Credit | |
Cash | $ 9,000 |
| ||
Accounts Receivable | 40,000 |
| ||
Notes Receivable | 10,000 |
| ||
Allowance for Doubtful Accounts |
| $ 1,800 | ||
Inventory | 44,000 |
| ||
Prepaid Insurance | 4,800 |
| ||
Equipment | 110,000 |
| ||
Accumulated Depreciation--Equip. |
| 15,000 | ||
Accounts Payable |
| 10,800 | ||
Common Stock |
| 44,000 | ||
Retained Earnings |
| 75,000 | ||
Sales Revenue |
| 260,000 | ||
Cost of Goods Sold | 126,000 |
| ||
Salaries and wages Expense | 50,000 |
| ||
Rent Expense | 12,800 | ________ | ||
| Totals | $406,600 | $406,600 | |
At year end, the following items have not yet been recorded.
a. | Insurance expired during the year, $3,000. |
b. | Estimated bad debts, 1.5% of gross sales. |
c. | Depreciation on equipment, 12% 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, $6,500 (originally charged to expense). |
f. | Accrued salaries and wages at December 31, $7,800. |
Instructions
(a) | Prepare the necessary adjusting entries. |
(b) | Prepare the necessary closing entries. |
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