Reference no: EM131827724
Problem - Presented below is the December 31 trial balance of New York Boutique.
|
NEW YORK BOUTIQUE TRIAL BALANCE DECEMBER 31
|
|
Debit
|
Credit
|
|
Cash
|
$ 18,500
|
|
|
Accounts Receivable
|
32,000
|
|
|
Allowance for Doubtful Accounts
|
|
$ 700
|
|
Inventory, December 31
|
80,000
|
|
|
Prepaid Insurance
|
5,100
|
|
|
Furniture and Equipment
|
84,000
|
|
|
Accumulated Depreciation-Furniture and Equipment
|
|
35,000
|
|
Notes Payable
|
|
28,000
|
|
Common Stock
|
|
80,600
|
|
Retained Earnings
|
|
10,000
|
|
Sales
|
|
600,000
|
|
Cost of Goods Sold
|
408,000
|
|
|
Sales Salaries Expense
|
50,000
|
|
|
Advertising Expense
|
6,700
|
|
|
Administrative Salaries Expense
|
65,000
|
|
|
Office Expense
|
5,000
|
|
|
$754,300
|
$754,300
|
Prepare adjusting journal entries for the following and post to the T-accounts.
Bad debt expense is estimated to be $1,400.
Furniture and equipment is depreciated based on a 7-year life (no salvage value).
Insurance expired during the year $2,550.
Interest accrued on notes payable $3,360.
Sales salaries earned but not paid $2,400.
Advertising paid in advance $700.
Office supplies on hand $1,500, charged to Office Expense when purchased.