[aholt03]

I have a few questions that rely on adding additional data to a trial balance. Some of the questions I think I have correct but it won't equal out.

Trial Balance
November 30.2007

Cash 12,200
A/R 16,300
Allowance for Doubtful Accounts 200
Inventoyr-12/1/06 14,175
Unexpired Insurance 660
Supplies on Hand 265
Land 18,000
Building 22,000
Accumulated Depr.-Building 6000
Office Equip 6800
Accum. Depr-Office Equipment 2100
A/P 11400
Mortg Payable 9000
Capital Stock 40000
Retained Earnings 2200
Dividends 8000
Sales 172000
Sales Returns and Allowances 600
Sales Discounts 2700
Purchases 109800
Purchase Returns and Allowances 1200
Purchase Discounts 2300
Transportation-IN 900
Salaries Expense 23000
Travel Expense 5200
Office Expense 1300
Professional Fee Expense 2500
Telephone Expense 1200
Building Repair Expense 800

Total 246,400/246,400


a. The Allowance for Doubtful Accounts should be increased by $400
b. Merchandise Inventory at November 30, 2007,was $16,200.
c. Unexpired Insurance on November 30,2007, amounted to $440.
d. Supplies on Hand Nov 30, 2007, $120
e. Building depreciation is calculated at 5% per year
f. Office depreciation is calculated at 10% per year
g. Salaries accrued at Nov 30, 2007 are $400

Additional entries that are blank are bad debt expense,inventory expense,insurance expense,supplies expense, dep. Exp-building, and dep. Exp-equipment.

These are the answers I have that may or may not be correct.

a.D-bad debt expense 400
C-allowance for doubtful accounts 400

b.D-inventory expense 2025
C-Inventory 2025

c.D-insurance expense 220
C-Prepaid Insurance 220

d. D-supplies expense 145
C-Supplies on hand 145

g. D-Salaries expense 400
C-Unpaid Salaries 400-which was also an item that was blank

Please help! It's not even. I don't understand the depreciation at all.

[Cynthia514]

Building depreciation is calculated at 5% per year
With this information, we can assume they use the straight-line method. What you can do with this is that multiply the cost of your buliding by 5% and debit it to depreciate expense and credit to accumulated depreciation - building. We'll have the same amount at the end of each period, let say, year end.
For this part "Merchandise inventory 12/1/06" I want to ask you if it was 06 or 07 for the yeaar?

[aholt03]

Inventory here is 2006 and I have to calculate it for Nov 07

[aholt03]

Thanks for your help. It equals out now!! Now I have to figure out an income statement using this info.