cassie blake
Nov 2, 2015, 07:40 PM
Additional Data at December 31, 1993:a) Supplies used during the year $2 580.b) Prepaid rent in force, $1 000c) Unearned sales revenue still not earned, $2 400. The company expects to earn thisamount during the next few months.d) Depreciation. The furniture and fixtures’ estimated useful life is 1 0 years, and they areexpected to be worthless when they are retired from service.e) Accrued salaries, $1 300.f) Accrued interest expense, $600.g) Inventory on hand, $65 800.Required:i) Adjusting journal entriesii) Accounting worksheet.iii) A multi-step income statement, statement of owner’s equity and a balance sheet.iv) Prepare the necessary closing entries.
Worksheet
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
5,670
5,670
Accounts Receivable
37 100
37 100
Inventory
60,500
5300
65,800
Supplies
3,930
2580
1,350
Prepaid Rent
6,000
1000
5,000
Furniture and fixtures
26,500
26,500
Accumulated Depreciation
21,200
2120
23,320
Accounts Payable
46,340
46,340
Salary Payable
1300
1300
Interest Payable
600
600
Unearned Sales Revenue
3,500
2400
1,100
Note Payable, Long Term
35,000
35,000
Wen Teng, Capital
23,680
23,680
Wen Teng, Withdrawals
48000
48000
Sales Revenue
346,700
2400
349,100
Sales Discounts
10,300
10,300
Sales Returns and Allowances
8,200
8,200
Cost of Goods Sold
171,770
171,770
Salary Expense
82,750
1300
84,050
Rent Expense
7,000
1000
8,000
Depreciation expense
2120
2,120
Utilities Expense
5,800
5,800
Supplies Expense
2580
2,580
Interest Expense
2,900
600
3,500
Inventory Change
5300
5300
Worksheet
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
5,670
5,670
Accounts Receivable
37 100
37 100
Inventory
60,500
5300
65,800
Supplies
3,930
2580
1,350
Prepaid Rent
6,000
1000
5,000
Furniture and fixtures
26,500
26,500
Accumulated Depreciation
21,200
2120
23,320
Accounts Payable
46,340
46,340
Salary Payable
1300
1300
Interest Payable
600
600
Unearned Sales Revenue
3,500
2400
1,100
Note Payable, Long Term
35,000
35,000
Wen Teng, Capital
23,680
23,680
Wen Teng, Withdrawals
48000
48000
Sales Revenue
346,700
2400
349,100
Sales Discounts
10,300
10,300
Sales Returns and Allowances
8,200
8,200
Cost of Goods Sold
171,770
171,770
Salary Expense
82,750
1300
84,050
Rent Expense
7,000
1000
8,000
Depreciation expense
2120
2,120
Utilities Expense
5,800
5,800
Supplies Expense
2580
2,580
Interest Expense
2,900
600
3,500
Inventory Change
5300
5300