[acc201lost]

Trial balance Dec 31

Account debit credit

Cash 12,000
Accounts receivable 40,000
Notes receivable 7,000
Allowance for doubtful accounts 1800
Merchandise inventory 54000
Unexpired insurance 4,800
Furniture& equip. 125,000
Accumulated depreciation of F. & E. 15,000
Accounts payable 10,800
Common stock 44,000
Retained earnings 65,000
Sales 300,000
Cost of goods sold 131,000
Salaries expense 50,000
Rent expense 12,800

________ ________
436,600 436,600

Not yet recorded
1) Insurance expired during year 2,000

2) Estimated bad debt 1% of sales

3) Depreciation on furniture & equip.10% per year

4) Interest at 9% is receivable on note for one full year

5) Rent paid in advance 5,400 (originally charged to expense)

6) Accrued salaries at Dec, 31, 5,800


I need to know how to do the adjusting entries

[CaptainForest]

How do you think you would do them?

Show what you have attempted, and then we will help you.

[acc201lost]

1)
Insurance expense 2,000
Expired insurance 2,000

2)
Bad debt expense 3,000
Allowance for doubbtfull accts. 3,000

6)
Salaries payable 5800
Salaries expense 5800

[CaptainForest]

Numbers 1 and 2 are correct.

Number 6 should be:
Dr. Salaries Expense 5,800
Cr. Salaries Payable 5,800

How do YOU think you should do numbers 3, 4, and 5?

[acc201lost]

3)
Depreciation expense 12,500
Accumulated depreciation 12,500

4)
Interest expense 630.00
Interest payable 630.00

5)
Prepaid rent 5,400
Rent expense 5,400

[CaptainForest]

Number 3 should be:

Furniture and equipment: 125,000
Less: Accumulated Depreciation 15,000
Net Book Value: 110,000

110,000 x .1 = 11,000

Dr. Depreciation Expense 11,000
Cr. Accumulated Depreciation 11,000


Number 4 should be:
Dr. Interest Receivable 630
Cr. Interest Revenue 630

It is a note receivable, NOT a note payable


Number 5 is correct.

[acc201lost]

Thank you

[CaptainForest]

You're welcome