Reference no: EM131190112

Question 1 - Presented below is the December 31 trial balance of New York Boutique.

NEW YORK BOUTIQUE TRIAL BALANCE DECEMBER 31
	Debit	Credit
Cash	$21,640
Accounts Receivable	38,360
Allowance for Doubtful Accounts		$760
Inventory, December 31	80,820
Prepaid Insurance	6,540
Equipment	98,000
Accumulated Depreciation-Equipment		32,420
Nlotes Payable		26,570
Common Stock		80,530
Retained Earnings		12,890
Sales Revenue		694,660
Cost of Goods Sold	467,470
Salaries and Wages Expense (sales)	50,640
Advertising Expense	7,220
Salaries and Wages Expense (administrative)	70,840
Supplies Expense	6,300
	$847,830	$847,830

Construct T-account and enter the balances shown.

Prepare adjusting journal entries for the following. (Credit account titles are auto)

1. Bad debt expense is estimated to be $1,700.

2. Equipment is depreciated based on a 7-year life. (no salvage value.)

3. Insurance expired during the year $2,850.

4. Interest accrued on notes payable $3,780.

5. Salaries and wages earned but nor paid $2,600.

6. Advertising paid in advance $760.

7. Office supplies on hand $1,270, charged to Supplies Expense when purchased.

Question 2 - The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company's fiscal year.

BELLEMY FASHION CENTER TRIAL BALANCE NOVEMBER 30,2014
	Debit	Credit
Cash	$33,480
Accounts Receivable	37,310
Inventory	48,610
Supplies	9,110
Equipment	140,220
Accumulated Depredation Equipment		$26,340
Notes Payable		54,610
Accounts Payable		52,110
Common Stock		93,610
Retained Earnings		11,610
Sales Revenue		765,590
Sales Returns and Allowances	4,200
Cost of Goods Sold	495,400
Salaries and Wages Expense	138,080
Advertising Expense	27,570
Utilities Expenses	15,920
Maintenance and Repairs Expense	12,100
Delivery Expense	16,700
Rent Expense	25,170

Adjustment data:

1. Supplies on hand totaled $5,110.

2. Depreciation is $16,755 on the equipment.

3. Interest of $14,930 is accrued on notes payable at November 30.

Other data:

1. Salaries expense is 70% selling and 30% administrative.

2. Rent expense and utilities expenses are 80% selling and 20% administrative.

3. $30,000 of notes payable is due for payment next year.

4. Maintenance and repairs expense is 100% administrative.

Journalize the adjusting entries.