Reference no: EM131491551

Assignment

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 debts are estimated to be $1,400.

(2) Furniture and equipment is depreciated based on a 6-year life (no salvage value).

(3) Insurance expired during the year $2,550.

(4) Interest accrued on notes payable $3,360.

(5) Sales salaries earned but not paid $2,400.

(6) Advertising paid in advance $700.

(7) Office supplies on hand $1,500, charged to Office Expense when purchased.

(c) Prepare closing entries and post to the accounts.