this is the SUA 10ths edition if someone can help me figure out the adjustments

these are the adjustment prompts

Adjustments for Year End

Turn to page 14 of Instructions and Flowcharts. All of the discussion below will match the outline letters and numbers on pages 14 and 15.

1. Complete the unadjusted trial balance columns of the Excel worksheet using the ledger balances. You should have posted the amounts from all of the journals (including the General Journal) and calculated new balances that reflect those postings. If your totals in the debit and credit columns are not equal, look over your work and see if you can find the problem.

2. Start work on the YEAR END ADJUSTMENTS.

a. We have already done some monthly adjustments and we recorded monthly adjustments in the General Journal.

b. You will be using b and not a as your first caption in the #ID columns. This adjustment is for depreciation. Go to your subsidiary fixed assets ledger in the Ledgers booklet. If Waren had a fixed assets system that was automated, these journal entries would be created from that system. (It is common for companies today to use the cloud (cloud services) for maintaining their fixed asset subsidiary accounts, BTW.) You will need to do your work in the subsidiary journal and base your adjustment entry b. on those calculations.

Notice that the first item, office furniture has been completely (fully) depreciated and you do not have to do a depreciation entry for this year.

For the delivery trucks, add a line for depreciation for this year. That amount should be the same as for last year. Update the Depreciation Balance (that is really the accumulated depreciation balance) and the book value.

For the inventory handling system, the second year depreciation should be twice the first. This is because in the first year, Waren takes a 1/2 of the full year's depreciation. Notice that we are taking 10% of the cost as depreciation since we do not have salvage value. Follow the procedure in 2. to update Depreciation Balance and book value.

For the 146 GB rack server, this is the first year for depreciation. We normally take 1/5 or 20% depreciation per year. In the first year, we take 1/2 of a full year, 1/2 of 20% is 10%, so take 10% in this first year. Again, update the totals for depreciation and book value.

For the new item you added, continue with this process. This is 5 year property so we would normally have 20% in a year but in the first year take 1/2 of 20% or 10%.

The total amount to record as a debit to depreciation expense and a credit to accumulated depreciation is the total of the depreciation taken for all these 4 items.

Record the amounts in the proper adjustment columns with the letter b in the ID# columns.

c. Interest expense. Waren needs to accrue interest expense for that note as $162.74. A payable needs to be recorded. Complete this adjustment using letter c.

d. Bad debt expense. The amount is based on net sales and that amount should be $7,560.40. Complete using adjustment letter d.

e. Ending inventory. Since Waren has an archaic system and uses only a periodic system, all of the accounts related to purchases need to be zeroed out. That is to say, our adjusting entry needs to close out all those accounts. The accounts are: purchases, purchases returns and allowances, purchases discounts taken, and freight in.

The other part of this entry is a credit to the inventory account to remove the beginning balance.

Next, debit that same inventory account to establish the ending balance. According to transaction list on page 5, the balance should be $101,681.00.

After you have entered these amounts in the proper columns, the amount which balances the entry

f. Federal income tax expense. Waren does not have any temporary differences or permanent differences to record in income tax. Therefore, income tax expense is going to based on net income. We will return to this adjustment.

3. Take a look at your worksheet. You should have debits and credits equal as was discussed in the video. You should have an income statement prepared. You should have a balance sheet prepared. (You do not need to adjust the retained earnings in the Worksheet file. It will be adjusted automatically when the balance sheet worksheet file is created -it is automated.)

Now you can return to adjustment f.

4. The federal income tax expense is 21%.

WAREN SPORTS SUPPLY, YEAR-END WORKSHEET, DECEMBER 31, 2022 TRANSACTIONS LIST A Instructor (Accounts with no activity in this worksheet are excluded in this solution. 81,559.50 \begin{tabular}{r|r|} 1,161.00 & 672.20 \\ \hline 117.89 & 19.93 \\ \hline 2,280.78 & \\ \hline \end{tabular} WAREN SPORTS SUPPLY, YEAR-END WORKSHEET, DECEMBER 31, 2022 TRANSACTIONS LIST A Instructor (Accounts with no activity in this worksheet are excluded in this solution. 81,559.50 \begin{tabular}{r|r|} 1,161.00 & 672.20 \\ \hline 117.89 & 19.93 \\ \hline 2,280.78 & \\ \hline \end{tabular}