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The Unadjusted Trial Balance for Snowcrest Ltd. for December 31, 2017, is presented below. Debit Credit Cash $ 31,000 Inventory 24,000 Advances to salespersons (Prepaid

The Unadjusted Trial Balance for Snowcrest Ltd. for December 31, 2017, is presented below.

Debit

Credit

Cash

$ 31,000

Inventory

24,000

Advances to salespersons (Prepaid commissions)

1,000

Prepaid rent

0

Office supplies

2,000

Equipment

20,000

Accumulated amortizationequipment

$ 4,000

Deposits from customers (Revenue received in advance)

0

Bank Loan

Common shares

20,000

40,000

Retained earnings

9,000

Sales revenue

220,000

Cost of goods sold

130,000

Salespersons' commissions

35,000

Office salaries

25,000

Rent expense

6,500

Miscellaneous expenses

15,000

Dividends declared

3,500

Totals

$293,000

$293,000

Information for Adjusting Entries:

The Sales figure includes Deposits from Customers of $2,800 for goods to be delivered

in the future.

Half of the Advances to Salespersons have been earned by them, by December 31.

Office Salaries owed at year end. but not paid are $900.

The Rent Expense figure includes $500 paid in advance for 2018.

A count of the Office Supplies revealed that $600 was still on hand at year end.

Amortization on the equipment for 2017 was $1,400.

The one year bank loan carries annual interest rate of 5%. Interest is due when bank loan matures on June 30, 2018.

Required:

Prepare the Adjusting Entries for the above items, in general journal form, for the year ended December 31, 2017. The company prepares adjustments annually.

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