Equipment was purchased on January 1, 2018 and has a useful life of 10 years.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information is available for the required adjusting entries:

5. Equipment was purchased on January 1, 2018 and has a useful life of 10 years. 

UNADJUSTED TB
ADJUSTMENTS
ADJUSTED TB
INCOME STATEMENT
BALANCE SHEET
December 31, 2021
December 31, 2021
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$
67,000
67,000
Short-term investments
62,000
62,000
Accounts receivable, net
68,000
68,000
Allowance for doubtful accounts
$
1,000
1,000
Supplies
56,000
56,000
Inventory
62,000
62,000
Prepaid insurance
48,000
48,000
Land
450,000
450,000
Equipment
210,000
210,000
Accumulated depreciation
75,000
75,000
Trademark
38,000
38,000
Accounts payable
39,000
39,000
Wages payable
Interest payable
Income tax payable
18,000
18,000
8,250
8,250
Unearned revenue
27,000
27,000
Long-term notes payable - due 03.01.23
60,000
60,000
Common stock, 50,000 shares issued and
outstanding
100,000
100,000
Retained earnings
220,000
220,000
Dividends
40,000
40,000
Sales revenue, net
1,592,964
1,592,964
Sales discount
1,368
1,368
Sales return and allowances
2,596
2,596
Interest revenue
Page 1
Cost of goods sold
683,100
683,100
Wages expense
240,000
240,000
Insurance expense
Bad debt expense
Supplies expense
113,150
113,150
Depreciation expense
Interest expense
44
3,600
Income tax expense
TOTALS
2 141 214
2 141 214
2 144 814
2 141 214
Transcribed Image Text:UNADJUSTED TB ADJUSTMENTS ADJUSTED TB INCOME STATEMENT BALANCE SHEET December 31, 2021 December 31, 2021 Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 67,000 67,000 Short-term investments 62,000 62,000 Accounts receivable, net 68,000 68,000 Allowance for doubtful accounts $ 1,000 1,000 Supplies 56,000 56,000 Inventory 62,000 62,000 Prepaid insurance 48,000 48,000 Land 450,000 450,000 Equipment 210,000 210,000 Accumulated depreciation 75,000 75,000 Trademark 38,000 38,000 Accounts payable 39,000 39,000 Wages payable Interest payable Income tax payable 18,000 18,000 8,250 8,250 Unearned revenue 27,000 27,000 Long-term notes payable - due 03.01.23 60,000 60,000 Common stock, 50,000 shares issued and outstanding 100,000 100,000 Retained earnings 220,000 220,000 Dividends 40,000 40,000 Sales revenue, net 1,592,964 1,592,964 Sales discount 1,368 1,368 Sales return and allowances 2,596 2,596 Interest revenue Page 1 Cost of goods sold 683,100 683,100 Wages expense 240,000 240,000 Insurance expense Bad debt expense Supplies expense 113,150 113,150 Depreciation expense Interest expense 44 3,600 Income tax expense TOTALS 2 141 214 2 141 214 2 144 814 2 141 214
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