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 TBADJUSTMENTSADJUSTED TBINCOME STATEMENTBALANCE SHEETDecember 31, 2021December 31, 2021DebitCreditDebitCreditDebitCreditDebitCreditDebitCreditCash$67,00067,000Short-term investments62,00062,000Accounts receivable, net68,00068,000Allowance for doubtful accounts$1,0001,000Supplies56,00056,000Inventory62,00062,000Prepaid insurance48,00048,000Land450,000450,000Equipment210,000210,000Accumulated depreciation75,00075,000Trademark38,00038,000Accounts payable39,00039,000Wages payableInterest payableIncome tax payable18,00018,0008,2508,250Unearned revenue27,00027,000Long-term notes payable - due 03.01.2360,00060,000Common stock, 50,000 shares issued andoutstanding100,000100,000Retained earnings220,000220,000Dividends40,00040,000Sales revenue, net1,592,9641,592,964Sales discount1,3681,368Sales return and allowances2,5962,596Interest revenuePage 1Cost of goods sold683,100683,100Wages expense240,000240,000Insurance expenseBad debt expenseSupplies expense113,150113,150Depreciation expenseInterest expense443,600Income tax expenseTOTALS2 141 2142 141 2142 144 8142 141 214

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Description: 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 TBADJUSTMENTSADJUSTED TBINCOME STATEMENTBALANCE SHEETDecember 31, 2021December 31, 2

Adjustment Entry: Adjusting entry is passed at the end of accounting period. The purpose of…

Answered: Equipment was purchased on January 1,…

Business

Accounting

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

Section: Chapter Questions

Problem 1Q

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