New york boutique_financial statements | Accounting homework help

P3.10.  

(adjusting and Closing)

 

Presented below is the December 31 trial balance of New York Boutique.

NEW YORK BOUTIQUE

Trial Balance

December 31

 

Debit

Credit

Cash

18,500$

 

Accounts Receivable

32,000

 

Allowance for Doubtful Accounts

 

700   $

Inventory, December 31

80,000

 

Prepaid Insurance

5,100

 

Equipment

84,000

 

Accumulated Depreciation—Equipment

 

35,000

Notes Payable

 

28,000

Common Stock

 

80,600

Retained Earnings

 

10,000

Sales Revenue

 

600,000

Cost of Goods Sold

408,000

 

Salaries and Wages Expense (sales)

50,000

 

Advertising Expense

6,700

 

Salaries and Wages Expense (administrative)

65,000

 

Supplies Expense

5,000

 

 

$754,300

$754,300

 

 

Instructions

(a)  

Construct T-accounts and enter the balances shown.

(b)  

Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.) Open additional T-accounts as necessary. (The books are closed yearly on December 31.)

1.   

Bad debt expense is estimated to be $1,400.

2.   

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

3.   

Insurance expired during the year $2,550.

4.   

Interest accrued on notes payable $3,360.

5.   

Sales salaries and wages earned but not paid $2,400.

6.   

Advertising paid in advance $700.

7.   

Office supplies on hand $1,500, charged to Supplies Expense when purchased.

 

 

 

(c)  

Prepare closing entries and post to the accounts.

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more