Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the unadjusted trial balance of Electric Bike on December 31, 2023. Debit Credit Cash $ 8,700 Accounts receivable 23,265 Merchandise inventory 35,200 Store supplies
Use the unadjusted trial balance of Electric Bike on December 31, 2023. Debit Credit Cash $ 8,700 Accounts receivable 23,265 Merchandise inventory 35,200 Store supplies 2,715 Office supplies 835 Prepaid insurance 3,855 Equipment 81,090 Accumulated depreciation, equipment $ 14,255 Accounts payable 8,600 Salaries payable 0 Braeden Li, capital 179,465 Braeden Li, withdrawals 65,000 Interest income 370 Sales 532,000 Sales returns and allowances 5,670 Cost of goods sold 381,760 Salaries expense 96,900 Rent expense 29,700 Supplies expense 0 Depreciation expense, equipment 0 Insurance expense 0 Totals $ 734,690 $ 734,690 Required: 1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $15,090. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $285 was unused at December 31, 2023. c. A review of the store supplies on December 31, 2023, revealed a balance on hand of $2,180; a similar examination of the office supplies showed that $670 had been used. d. Accrued salaries payable, $2,100. e. A count of the merchandise inventory revealed a balance on hand December 31, 2023, of $34,340
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started