[Jenilee]

The trial balance of the Coleman-Foose Company was prepared from the record of the company on November 30, 20X2, the close of its fiscal year:

Trial Balance
November 30, 20X2

Cash 12200
Accounts receivable 16300
Aloowance for doubtful accounts 200
inventory - 12/1/X1 14175
unexpired insurance 660
supplies on hand 265
land 18000
building 22000
accumulated depreciation - building 6000
office equipment 6800
accumulated depreication - office equipment 2100
accounts payable 11400
mortgage payable 9000
capial stock 40000
retained earnings 2200
dividends 8000
sales 172000
sales returns and allowances 600
sales discounts 2700
purchases 109800
purchases 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 246400 246400

Additional data:
a. the allowance for doubtful accounts should be increase by $400
b. merchandise inventory at November 30, 20x2 was 16200
c. unexpired insurance on November 30, 20x2 amounted to 440
d. supplies on hand November 30, 20x2, 120
e. building depreciation is calculated at 5% per year
f. office depreciation is calculated at 10% per year
g. salaries accrued at November 30, 20x2, are 400

1. prepare a work sheet
2. prepare an income statement for the year
3. prepare closing entries

[Just Looking]

Please read this announcement. We won't do your homework for you, but we can guide you.

https://www.askmehelpdesk.com/financ...-b-u-font.html

You could start by posting your journal entries and we'll check them for you. Once they are right, you can post them and come up with your adjusted trial balance. If you'll do that and need help, we'll go from there. Thanks.

[Just Looking]

a) Allowance for Doubtful Accounts is a contra-asset account. What that means is that Accounts Receivable is an asset, and the allowance subtracts from it. To increase an asset, you debit it. To increase a contra-asset, you credit it. Therefore the correct entry is:

Bad Debt Expense .................................400
Allowance for Doubtful Accounts........................400

b) You are correct in the dr to Inventory, but the credit should be to Purchases. They have charged their purchases to Purchases as an expense, but did not use all the amount purchased - thus the inventory increased.

c) Correct

d) The credit to Supplies On Hand is correct. The debit should be to an expense account. They have used some of the Supplies on Hand. The best choice I see is Office Expense.

e) When they say depreciation is 5%, they are talking about 5% of the original cost of the building, or 5% of $22,000 = $1,100. Your dr and cr accounts are correct, just the amount is incorrect.

f) Same with Office Equipment. The accounts are fine, but it would be 10% of $6,800 = $680.

g) Correct

Please let me know if you need further explanation on any of these.

If they make sense, the next step is to post them to your worksheet. You are going to end up with a worksheet with several columns. The first two columns are the trial balance you were given in your original post. The second two columns will be posting the debits and credits from your adjustments in a-g. The next two columns will be the adjusted trial balance. So that you can see what I am saying, look at this link as an example of the formatting. If you go down about a third of the page you will see a spreadsheet (green and yellow highlighting).

Principles of Accounting Chapter 4

P.S. When replying, instead of using the comment box use the Answer box at the bottom of the page. It gives you a lot more space to write.

[Monica1966]

So with additional date:

b. Are you saying the merchandise Inventory at Nov30,20X2,was $16,200
should be recorded bt Debiting Inventory and Crediting Purchases