Details of this Paper

NEW YORK BOUTIQUE_Financial Statements

Description

solution


Question

Question;P3.10.;(adjusting and Closing);4567;Presented below is the December 31 trial balance of New York;Boutique.;NEW YORK BOUTIQUE;TrialBalance;December31;Debit;Credit;Cash;18,500?$;Accounts;Receivable;32,000;Allowance;for Doubtful Accounts;?700???$;Inventory;December 31;80,000;Prepaid;Insurance;5,100;Equipment;84,000;Accumulated;Depreciation?Equipment;35,000;Notes;Payable;28,000;Common;Stock;80,600;Retained;Earnings;10,000;Sales;Revenue;600,000;Cost;of Goods Sold;408,000;Salaries;and Wages Expense (sales);50,000;Advertising;Expense;6,700;Salaries;and Wages Expense (administrative);65,000;Supplies;Expense;5,000;$754,300;$754,300;Instructions;(a);Construct;T-accounts and enter the balances shown.;(b);Prepare;adjusting journal entries for the following and post to the T-accounts.;(Omit explanations.) Open additional T-accounts as necessary. (The books;are closed yearly on December 31.);1.;Bad;debt expense is estimated to be $1,400.;2.;Equipment;is depreciated based on a 7-year life (no salvage value).;3.;Insurance;expired during the year $2,550.;4.;Interest;accrued on notes payable $3,360.;5.;Sales;salaries and wages earned but not paid $2,400.;6.;Advertising;paid in advance $700.;7.;Office;supplies on hand $1,500, charged to Supplies Expense when purchased.;(c);Prepare;closing entries and post to the accounts.

 

Paper#45176 | Written in 18-Jul-2015

Price : $27
SiteLock