Question
Use the unadjusted trial balance of Jumbos on December 31, 2017. Debit Credit Cash $ 8,900 Accounts receivable 23,465 Merchandise inventory 35,400 Store supplies 2,815
Use the unadjusted trial balance of Jumbos on December 31, 2017.
Debit | Credit | |||
Cash | $ | 8,900 | ||
Accounts receivable | 23,465 | |||
Merchandise inventory | 35,400 | |||
Store supplies | 2,815 | |||
Office supplies | 855 | |||
Prepaid insurance | 4,055 | |||
Equipment | 83,290 | |||
Accumulated depreciation, equipment | $ | 14,455 | ||
Accounts payable | 8,800 | |||
Salaries payable | 0 | |||
Sally Fowler, capital | 182,965 | |||
Sally Fowler, withdrawals | 66,000 | |||
Interest income | 390 | |||
Sales | 533,000 | |||
Sales returns and allowances | 5,870 | |||
Cost of goods sold | 381,960 | |||
Salaries expense | 97,100 | |||
Rent expense | 29,900 | |||
Supplies expense | 0 | |||
Depreciation expense, equipment | 0 | |||
Insurance expense | 0 | |||
|
|
|
| |
Totals | $ | 739,610 | $ | 739,610 |
|
|
|
| |
|
Required: 1. Record adjusting entries for the following information. a. A review of the store supplies on December 31, 2017, revealed a balance on hand of $2,240; a similar examination of the office supplies showed that $680 had been used. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $295 was unused at December 31, 2017. c. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a resale value at the end of its life of $15,290. d. Accrued salaries payable, $2,200. e. A count of the merchandise inventory revealed a balance on hand December 31, 2017, of $34,520.
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