The unadjusted trial balance of Sheffield Enterprises for th

The unadjusted trial balance of Sheffield Enterprises for the year ended December 31, 2017, follows: SHEFFIELD ENTERPRISES Trial Balance December 31, 2017 Credit Debit $15,000 19,200 37,050 3,000 2,950 150,000 Cash Accounts receivable Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Furniture Accumulated depreciation-furniture Accounts payable Unearned revenu Mortgage payable S. Kim, capital S. Kim, drawings Sales Sales returns and allowances Sales discounts Cost of goods sold Interest expense Salaries expense Utilities expense $35,000 45,000 18,000 33,200 4,000 125,000 46,200 48,000 265,000 2,500 3,275 153,000 6,875 35,450 5,100 $526,400 $526,400 Additional information: 1. There is $770 of supplies on hand on December 31, 2017. 2. The one-year insurance policy was purchased on March 1, 2017. 3. Depreciation expense for the year is $10,200 for the equipment and $4,500 for the furniture 4. Accrued interest expense at December 31, 2017, is $675

Solution

Adjusting Entries

No

Date

Accounts Title and Explanation

Debit

Credit

1

31-Dec

Supplies Expenses

$    2,180.00

          Supplies

$    2,180.00

(Supplies Consumed during the Year)

2

31-Dec

Insurance Expenses

$    2,500.00

            Prepaid Insurance

$    2,500.00

(Insurance expired for 10 months)

3

31-Dec

Depreciation expenses-Equipment

$ 10,200.00

Depreciation expenses-Furniture

$    4,500.00

      Accumulated depreciation-Equipment

$ 10,200.00

      Accumulated depreciation-Furniture

$    4,500.00

(depreciation for the year Charged)

4

31-Dec

Interest Expenses

$        675.00

        Accrued Expenses

$        675.00

(Accrued interest fot the year)

5

31-Dec

Unearned Revenue

$    3,200.00

          Sales

$    3,200.00

(Sales revenue)

5

31-Dec

Cost of Goods Sold Account

$    1,950.00

     Merchandise Inventory

$    1,950.00

(Cost of goods sold Recorded)

6

31-Dec

Loss of Inventory

$    2,450.00

     Merchandise Inventory

$    2,450.00

(Cost of goods sold Recorded for the year being Inventory Consumed)

Working note for entry number 6

Opening balance of Merchandise Inventory

$ 37,050.00

Less -Used For unearned revenue sales

$    1,950.00

Closing inventory

$ 32,650.00

Loss Of inventory (balancing Figure)

$    2,450.00

Adjusting Entries
No	Date	Accounts Title and Explanation	Debit	Credit
1	31-Dec	Supplies Expenses	$    2,180.00
		Supplies		$    2,180.00
		(Supplies Consumed during the Year)
2	31-Dec	Insurance Expenses	$    2,500.00
		Prepaid Insurance		$    2,500.00
		(Insurance expired for 10 months)
3	31-Dec	Depreciation expenses-Equipment	$ 10,200.00
		Depreciation expenses-Furniture	$    4,500.00
		Accumulated depreciation-Equipment		$ 10,200.00
		Accumulated depreciation-Furniture		$    4,500.00
		(depreciation for the year Charged)
4	31-Dec	Interest Expenses	$        675.00
		Accrued Expenses		$        675.00
		(Accrued interest fot the year)
5	31-Dec	Unearned Revenue	$    3,200.00
		Sales		$    3,200.00
		(Sales revenue)
5	31-Dec	Cost of Goods Sold Account	$    1,950.00
		Merchandise Inventory		$    1,950.00
		(Cost of goods sold Recorded)
6	31-Dec	Loss of Inventory	$    2,450.00
		Merchandise Inventory		$    2,450.00
		(Cost of goods sold Recorded for the year being Inventory Consumed)