Question - Using the following unadjusted trial balance as of December 31, 2010 and the additional information provided in each question, prepare the end-of-period adjusting journal entries along with journal entry explanation.
|
Cash
|
26,700
|
|
|
Accounts receivable
|
33,700
|
|
|
Inventory
|
45,000
|
|
|
Store supplies
|
5,500
|
|
|
Store equipment
|
85,000
|
|
|
Delivery equipment
|
48,000
|
|
|
Accumulated depreciation
|
|
24,000
|
|
Note payable
|
|
51,000
|
|
Accounts payable
|
|
48,500
|
|
Common stock
|
|
90,000
|
|
Retained earnings
|
|
8,000
|
|
Sales
|
|
753,000
|
|
Cost of goods sold
|
497,400
|
|
|
Salaries expense
|
140,000
|
|
|
Advertising expense
|
26,400
|
|
|
Utilities expense
|
11,000
|
|
|
Store supplies expense
|
3,000
|
|
|
Repair expense
|
12,100
|
|
|
Delivery expense
|
16,700
|
|
|
Rent expense
|
24,000
|
|
|
Totals
|
974,500
|
974,500
|
On October 1, 2010, the company signed a new three-year lease and paid $9,000 for the next nine months of rent.