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question wildhorse boutique trial balance december 31 debit credit 854 530 854 530 b 4288296

Question

WILDHORSE BOUTIQUE

TRIAL BALANCE

DECEMBER 31

Debit

Credit

$854,530

$854,530

(b1)

Prepare adjusting journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)

Presented below is the December 31 trial balance of Wildhorse Boutique.

WILDHORSE BOUTIQUE

TRIAL BALANCE

DECEMBER 31

 

 

Debit

 

Credit

Cash

 

$20,100

 

 

Accounts Receivable

 

39,800

 

 

Allowance for Doubtful Accounts

 

 

 

$717

Inventory, December 31

 

80,410

 

 

Prepaid Insurance

 

5,350

 

 

Equipment

 

91,000

 

 

Accumulated Depreciation—Equipment

 

 

 

35,600

Notes Payable

 

 

 

27,530

Common Stock

 

 

 

74,607

Retained Earnings

 

 

 

10,990

Sales Revenue

 

 

 

705,086

Cost of Goods Sold

 

476,900

 

 

Salaries and Wages Expense (sales)

 

61,200

 

 

Advertising Expense

 

6,790

 

 

Salaries and Wages Expense (administrative)

 

67,600

 

 

Supplies Expense

 

5,380

 

 

 

 

$854,530

 

$854,530

         

(b1)

Prepare adjusting journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)

1.

 

Bad debt expense is estimated to be $1,424.

2.

 

Equipment is depreciated based on a 7-year life (no salvage value).

3.

 

Insurance expired during the year $2,756.

4.

 

Interest accrued on notes payable $3,126.

5.

 

Sales salaries and wages earned but not paid $2,226.

6.

 

Advertising paid in advance $717.

7.

 

Office supplies on hand $1,630, charged to Supplies Expense when purchased.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         

 

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