Unadjusted
Account Title	Trial Balance
	DR	CR
Cash	240,300	-
Accounts Receivable	925,000	-
Allowance for Doubtful Accounts	-	49,000
Interest Receivable	-
Merchandise Inventory	187,500	-
Prepaid Insurance	9,000	-
Prepaid Advertising	-	-
Prepaid Rent	-	-
Office Supplies	7,800	-
Note Receivable	75,000	-
Available for Sale Securities	380,000	-
Office Building	4,250,000	-
Accumulated Depreciation - Office Building	-	221,500
Storage Building	1,650,000	-
Accumulated Depreciation - Storage Building	-	-
Land	450,000	-
Leasehold Improvements	190,000	-
Accumulated Depreciation - Leasehold Improvements	-	-
Office Equipment	125,000	-
Accumulated Depreciation - Office Equipment	-	42,000
Patent	250,000	-
Accounts Payable	-	145,000
Sales Tax Payable	-	-
Salaries Payable	-	-
Payroll Taxes Payable	-	-
Interest Payable	-	-
Income Tax Payable	-	-
Unearned Rent Revenue	-	96,000
Loan Payable - Onstar Bank	-	500,000
Loan Payable - Coldstar Bank	-	2,250,000
Common Stock	-	425,000
Additional Paid in Capital	-	2,800,000
Retained Earnings	-	1,379,420
Accumulated Other Comprehensive Income	-	8,500
Dividends	280,000	-
Sales	-	4,380,250
Sales Returns and Allowances	19,500	-
Sales Discounts	14,600	-
Cost of Goods Sold	1,817,900	-
Sales Salaries Expense	676,400	-
Office Salaries Expense	434,000	-
Advertising Expense	54,000	-
Depreciation Expense - Office Building	-	-
Depreciation Expense - Leasehold Improvements	-	-
Depreciation Expense - Office Equipment	-	-
Leasing Expense - Stores	132,000	-
Miscellaneous Selling Expense	16,950	-
Rent Expense - Storage Facility	18,000	-
Insurance Expense	2,000	-
Office Supplies Expense	28,500	-
Warranty Expense	5,000
Miscellaneous Administrative Expense	9,220	-
Rent Revenue	-	-
Interest Revenue on Note Receivable	-	-
Dividend Revenue on AFS Securities	-	18,000
Bad Debt Expense	67,000	-
	12,314,670	12,314,670

1. On the designated worksheet, prepare in journal entry form all adjusting and correcting journal entries based on the following information. (round all numbers to the nearest dollar). Letter entries to correspond to the below information and present them in alphabetical order. Add any new accounts as needed to the trial balance. Streamline each adjusting entry by combining accounts. Each entry must be entirely correct to receive allocated points. Before preparing entries, finish the story by filling in the blanks.

DeeDee Double Entry was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 425,000 shares of common stock as of 12/31/2017. No new shares were issued during 2017.

a.) DeeDee does banking at three different financial institutions. The details are as DeeDee Double Entry

Bank	Account #	Balance
Coterica	123456	175,000
Coterica	123457	(10,000)
4th Bank	345689	82,000
Bank Two	397567	(6,700)

a.) You also note the Board of Directors has restricted $27,000 of cash for future expansion. This $27,000 is part of the cash balance. The future expansion will not occur for several more years.

b.) Based on your inquiries, you note that $67,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $67,000 and credited Accounts Receivable for $67,000. When $15,000 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, DeeDee determines that uncollectible accounts are $89,000 at the end of 2017.

c.) Per a physical count of office supplies, $4,879 of supplies remained at the end of 2017. The balance on the worksheet in the office supplies account represents last years ending balance. During the year, $28,500 of office supplies were purchased and immediately expensed.

d.) Because of strong demand and a need for additional inventory, DeeDee needed some temporary additional storage space so on June 1, 2017 they rented a unit for an annual rate of $18,000 and they paid the entire amount up front.

e.) On December 1, 2017, DeeDee loaned a key supplier, $75,000. A promissory note was signed and issued. The agreed upon interest rate was 5.5% and the key supplier has agreed to pay interest and $15,000 of the principle each January 1^st. The note was recorded in Notes Receivable and is the only note outstanding.

f.) On February 1, 2017, DeeDee renewed a 19 month insurance policy for $9,000. All cash was paid at the time the policy was signed and prepaid insurance was increased. All other transactions involving insurance were properly recorded.

g.) The office building was bought in January 1, 2015 by DeeDee and DeeDee originally planned to use the building for 40 years and estimated no salvage value. DeeDee depreciates the building on a straight line basis. Now in 2017, DeeDee estimates the total life to remain at 40 years, but believes the salvage will be $900,000.

h.) DeeDee is open seven days a week and has a daily payroll of $8500. Employees are paid every Friday, December 31 is a Wednesday. 40% of the payroll is for office employees, 60% of payroll is for sales employees. The employer portion of FICA expense is 7.65% and no employee has reached the maximum. DeeDee records payroll tax expenses in salary expense.