Trial Balance Adjustments Balance Sheet 3010000 3520000 3018

Trial Balance Adjustments Balance Sheet 30,100.00 35,200.00 30,180.0e 35,2e0.06 $ 30,180.00 35,260.0e Accounts Receivable for Doubtful 420.ee 2,800.00 3,220.00 Prepaid Insurance Office Equipment Accumulated Depr.-Office ise Inventory 86,080.00 10,400.00 5,480.80 78,00e.ee 86,000.00 78,808.e0 9,220.0 1,180.ee 3,600.00 1,800.ee 8,380.ee 78,eee.ee 1,189.e9 1,880.ee 8,300.00 1,325.00 3,975.08 28,000.0e 28,000.0e 4,880.00 14,480.0e 14,480.ee 32,000.e9 640.00 1,990.08 460.s0 30.00 270?00 5,000.80 32,000.00 12,209.ee 32,8e0.00 12,200.0 12,200.ee 648.08 310.00 72.50 0.00 270.00 5,000.80 Social Security Tax 1,990.ee 460.50 3e.ee 270.00 5,000.00 1,680.e0 388.00 ries Payable 6:57 PM

Solution

Sl No DESCRIPTION DEBIT CREDIT 1 Income summary 86000 Merchandise inventory 86000 (Adjustment for beginning inventory) 2 Merchandise inventory 78000 Income summary 78000 (Adjustment for ending inventory) 3 Uncollectible accounts expense 2800 Allowance for doubtful accounts 2800 (560000*0.5%) (Adjustment for uncollectible accounts) 4 Supplies expense 9220 Supplies (10400-1180) 9220 (Adjustment for supplies used) 5 Insurance expense (5400/12)*8 3600 Prepaid insurance 3600 (Adjustment for prepaid insurance) 6 Depr. Expense-Office equipment 1325 Accumulated Depr.-Office equipment 1325 (8300-350)/6 (Adjustment for depreciation expenses) 7 Depr. Expense-Warehouse equipment 4800 Accumulated Depr.-Warehouse equipment 4800 (28000-4000)/5 (Adjustment for depreciation expenses) 8 Interest expense 640 Interest payable (32000*12%*2/12) 640 (Adjustment for interest payable on note) 9 Salaries expense 5000 Salaries payable 5000 (Adjustment for salaries unpaid) 10 Payroll tax expense 382.5 Social security taxes payable (5000*6.2%) 310 Medicare taxes payable (5000*1.45%) 72.5 (Adjustment for payroll expense on unpaid salaries) 11 Payroll tax expense 300 Federal unemployment tax payable (5000*0.6%) 30 State unemployment tax payable (5000*5.4%) 270 (Adjustment for payroll expense on unpaid salaries) 12 Sales 653778 Sales returns and allowances 10000 Income summary 643778 (Closing entry for revenue and other credit items) 13 Income summary 580067.5 Purchase returns and allowances 9200 Purchases 350000 Rent expense 36000 Telephone expense 2200 Salaries expense 165000 Payroll tax expense 13682.5 Supplies expense 9220 Insurance expense 3600 Depr. Expense-Office equipment 1325 Depr. Expense-Warehouse equipment 4800 Uncollectible accounts expense 2800 Interest expense 640 (Closing entry for expense and other debit items)