Question:
| Could use some help on these adjusting entries. |
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 |
|
|
|
|
DeeDee does banking at three different financial institutions. The details are as DeeDee Double Entry
| Bank |
Account #
|
Balance |
| Coterica |
123456 |
175,000 |
| Coterica |
123457 |
(10,000) |
| 4th Bank |
345689 |
82,000 |
|
Bank Two
|
397567 |
(6,700) |
1. You also note the Board of Directors has restricted $27,000 of cash for future expansion. This $27,000 is part of the cash balance. The future expansion will not occur for several more years.
2. Based on your inquiries, you note that $67,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $67,000 and credited Accounts Receivable for $67,000. When $15,000 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, DeeDee determines that uncollectible accounts are $89,000 at the end of 2017. (Replace the X with the last digit of your student number).
3. Per a physical count of office supplies, $4,859 (enter the last two digits of your student number) of supplies remained at the end of 2017. The balance on the worksheet in the office supplies account represents last years ending balance. During the year, $28,500 of office supplies were purchased and immediately expensed.
4. Because of strong demand and a need for additional inventory, DeeDee needed some temporary additional storage space so on June 1, 2017 they rented a unit for an annual rate of $18,000 and they paid the entire amount up front.