The unadjusted trial balance of Riverbed Enterprises for the year ending December 31, 2021, follows: RIVERBED ENTERPRISES Trial Balance December 31, 2021 Debit Credit Cash $15.000 Accounts receivable 19.200 Merchandise inventory 37,050 Prepaid insurance 3.000 Supplies 2.950 Equipment 150.000 Accumulated depreciation equipment $35.000 Furniture 45,000 Accumulated depreciation-furniture 18,000 Accounts payable 33,200 Unearned revenue 4.000 Mortgage payable 125.000 S. Kim, capital 46.200 S. Kim, drawings 48,000 Sales 265,000 Sales returns and allowances 2.500 Sales discounts 3,275 Cost of goods sold 153,000 Interest expense 6,875 Salaries expense 35,450 Utilities expense 5.100 $526,400 $526,400 Additional information: 1. There is $810 of supplies on hand on December 31, 2021. 2. The one-year insurance policy was purchased on March 1, 2021. 3. Depreciation expense for the year is $10,300 for the equipment and $4,500 for the furniture. 4. Accrued interest expense at December 31, 2021, is $725. 5. Unearned revenue of $775 is still unearned at December 31, 2021. On the sales that were earned, cost of goods sold was $2,050. 6. A physical count of merchandise inventory indicates $32,150 on hand on December 31, 2021. 7. Global uses the perpetual inventory system and the earnings approach. Prepare the adjusting journal entries assuming they are prepared annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit No. Date Account Titles and Explanation 1. Dec. 31 (To record supplies used.) 2. Dec. 31 (To record insurance expired.) 3. Dec. 31 (To record depreciation.) 4. Dec. 31 (To accrue interest expense. 5. Dec. 31 (To recognized sales earned.) Dec 31 (To record cost of goods sold.) 6. Dec. 31 (To adjust ending inventory to actual at year end.) Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) RIVERBED ENTERPRISES Income Statement $ $ $ Prepare a single-step income statement. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) RIVERBED ENTERPRISES Income Statement $ $ Prepare the closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 (To close income statement account with credit balance.) Dec. 31
