Question 1 - Presented below is the December 31 trial balance of New York Boutique.
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NEW YORK BOUTIQUE TRIAL BALANCE DECEMBER 31
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Debit
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Credit
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Cash
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$21,640
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Accounts Receivable
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38,360
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Allowance for Doubtful Accounts
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$760
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Inventory, December 31
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80,820
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Prepaid Insurance
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6,540
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Equipment
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98,000
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Accumulated Depreciation-Equipment
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32,420
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Nlotes Payable
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26,570
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Common Stock
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80,530
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Retained Earnings
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12,890
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Sales Revenue
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694,660
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Cost of Goods Sold
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467,470
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Salaries and Wages Expense (sales)
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50,640
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Advertising Expense
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7,220
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Salaries and Wages Expense (administrative)
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70,840
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Supplies Expense
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6,300
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$847,830
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$847,830
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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.
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BELLEMY FASHION CENTER TRIAL BALANCE NOVEMBER 30,2014
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Debit
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Credit
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Cash
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$33,480
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Accounts Receivable
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37,310
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Inventory
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48,610
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Supplies
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9,110
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Equipment
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140,220
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Accumulated Depredation Equipment
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$26,340
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Notes Payable
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54,610
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Accounts Payable
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52,110
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Common Stock
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93,610
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Retained Earnings
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11,610
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Sales Revenue
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765,590
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Sales Returns and Allowances
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4,200
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Cost of Goods Sold
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495,400
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Salaries and Wages Expense
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138,080
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Advertising Expense
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27,570
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Utilities Expenses
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15,920
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Maintenance and Repairs Expense
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12,100
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Delivery Expense
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16,700
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Rent Expense
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25,170
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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.