Question:
| Need help on these adjusting entries please. |
Unadjusted |
|
|
Adjusted |
| Account Title |
Trial Balance |
Adjustments |
Trial Balance |
|
DR |
CR |
DR |
CR |
DR |
CR |
| Cash |
240,300 |
- |
|
|
|
|
| Accounts Receivable |
925,000 |
- |
|
|
|
|
| Allowance for Doubtful Accounts |
- |
49,000 |
|
|
|
|
| Interest Receivable |
- |
|
|
|
|
|
| Merchandise Inventory |
187,500 |
- |
|
|
|
|
| Prepaid Insurance |
9,000 |
- |
|
|
|
|
| Prepaid Advertising |
- |
- |
|
|
|
|
| Prepaid Rent |
- |
- |
|
|
|
|
| Office Supplies |
7,800 |
- |
|
|
|
|
| Note Receivable |
75,000 |
- |
|
|
|
|
| Available for Sale Securities |
380,000 |
- |
|
|
|
|
| Office Building |
4,250,000 |
- |
|
|
|
|
| Accumulated Depreciation - Office Building |
- |
221,500 |
|
|
|
|
| Storage Building |
1,650,000 |
- |
|
|
|
|
| Accumulated Depreciation - Storage Building |
- |
- |
|
|
|
|
| Land |
450,000 |
- |
|
|
|
|
| Leasehold Improvements |
190,000 |
- |
|
|
|
|
| Accumulated Depreciation - Leasehold Improvements |
- |
- |
|
|
|
|
| Office Equipment |
125,000 |
- |
|
|
|
|
| Accumulated Depreciation - Office Equipment |
- |
42,000 |
|
|
|
|
| Patent |
250,000 |
- |
|
|
|
|
| Accounts Payable |
- |
145,000 |
|
|
|
|
| Sales Tax Payable |
- |
- |
|
|
|
|
| Salaries Payable |
- |
- |
|
|
|
|
| Payroll Taxes Payable |
- |
- |
|
|
|
|
| Interest Payable |
- |
- |
|
|
|
|
| Income Tax Payable |
- |
- |
|
|
|
|
| Unearned Rent Revenue |
- |
96,000 |
|
|
|
|
| Loan Payable - Onstar Bank |
- |
500,000 |
|
|
|
|
| Loan Payable - Coldstar Bank |
- |
2,250,000 |
|
|
|
|
| Common Stock |
- |
425,000 |
|
|
|
|
| Additional Paid in Capital |
- |
2,800,000 |
|
|
|
|
| Retained Earnings |
- |
1,379,420 |
|
|
|
|
| Accumulated Other Comprehensive Income |
- |
8,500 |
|
|
|
|
| Dividends |
280,000 |
- |
|
|
|
|
| Sales |
- |
4,380,250 |
|
|
|
|
| Sales Returns and Allowances |
19,500 |
- |
|
|
|
|
| Sales Discounts |
14,600 |
- |
|
|
|
|
| Cost of Goods Sold |
1,817,900 |
- |
|
|
|
|
| Sales Salaries Expense |
676,400 |
- |
|
|
|
|
| Office Salaries Expense |
434,000 |
- |
|
|
|
|
| Advertising Expense |
54,000 |
- |
|
|
|
|
| Depreciation Expense - Office Building |
- |
- |
|
|
|
|
| Depreciation Expense - Leasehold Improvements |
- |
- |
|
|
|
|
| Depreciation Expense - Office Equipment |
- |
- |
|
|
|
|
| Leasing Expense - Stores |
132,000 |
- |
|
|
|
|
| Miscellaneous Selling Expense |
16,950 |
- |
|
|
|
|
| Rent Expense - Storage Facility |
18,000 |
- |
|
|
|
|
| Insurance Expense |
2,000 |
- |
|
|
|
|
| Office Supplies Expense |
28,500 |
- |
|
|
|
|
| Warranty Expense |
5,000 |
|
|
|
|
|
| Miscellaneous Administrative Expense |
9,220 |
- |
|
|
|
|
| Rent Revenue |
- |
- |
|
|
|
|
| Interest Revenue on Note Receivable |
- |
- |
|
|
|
|
| Dividend Revenue on AFS Securities |
- |
18,000 |
|
|
|
|
| Bad Debt Expense |
67,000 |
- |
|
|
|
|
|
12,314,670 |
12,314,670 |
|
|
|
|
1. On December 1, 2017 DeeDee paid ABC Advertising $16,000 for a four month campaign of advertising services. Equal services are provided each month. All other advertising paid for during the year has been consumed.
2. On August 1, 2017, DeeDee rented a portion of one store to Marketing Majors Inc. The contract was for 19 (enter the last digit of your student number) months and DeeDee required all of the cash up front. The rent is being earned equally each month. This is the only item in which rent is being earned by the company.
3. As of 12/31/2017 the Available for Sale Securities have a fair value of $291,000 (enter the last digit of your student number in place of the X). Due to the market conditions, the company does not plan on selling the assets in 2017, but their intent is to sell at some point in time. You can ignore the tax effect on unrealized gains and losses. (Hint: Unrealized Gains and Losses are closed to Accumulated Other Comprehensive Income at the end of the year.)
4. DeeDee uses the DDB method to depreciate office equipment. No office equipment was added during 2017. It is estimated that the office equipment has a useful life of 10 years with a salvage value of $2,000. Prior depreciation was correctly calculated based on period of time held.