Problem 310 Presented below is the December 31 trial balance

Problem 3-10 Presented below is the December 31 trial balance of Pearl Boutique. PEARL BOUTIQUE TRIAL BALANCE DECEMBER 31 Debit Credit $24,100 41,700 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory, December 31 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense (sales) Advertising Expense Salaries and Wages Expense (administrative) Supplies Expense $656 80,440 5,920 91,000 37,800 25,360 75,265 9,440 657,909 422,700 64,800 7,350 63,560 4,860 $806,430 $806,430

Solution

Journal Entries :

T-Accounts :

Closing Entries :

Date	Accounts Titles and explanation	Debit $	Credit $
1	Bad Debt	661
	Allowance for Doubtful Accounts		661
	(1317 - Credit balance of Allowance 656)
2	Dep.	13000
	Acc Dep - Eq.		13000
	(91000/7)
3	Insurance Exp.	2632
	Prepaid Insurance		2632
4	Interest Expense	3676
	Interest payable		3676
	(accrued interest)
5	Sales salary & wages expenses	2532
	Salary & wages payable		2532
6	Prepaid Exp. (advertising)	656
	Cash		656
7	Supplies	1600
	Supplies Expense		1600