A/C Name Belvidere Pharmaceuticals B-Town Division Trial Balance as of December 31, 2021 Cash Accounts receivable Allowance for bad debt Other debtors Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture & Equipment Accumulated depreciation-Furniture and equipment Delivery Van Accumulated depreciation- Delivery Van Accounts payable Salary payable Interest payable Unearned Sales revenue Note Payable, long term Patty Patterson, Capital Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture and Equipment Depreciation Expense - Delivery Van Store Supplies Expense Gain on Disposal of Delivery Van Bad Debt Expense Interest Expense Trial Balance DR 2,500,000 5,000,000 5,000,000 1,800,000 2,660,000 2,940,000 8,000,000 4,000,000 180,000 1,200,000 950,000 9,500,000 8,889,000 750,000 2,940,000 CR 400,000 3,120,000 2,951,424 1,450,000 1,650,000 6,000,000 9,600,000 31,137,576 56,309,000 56,309,000 Page | 5 The following additional information is available December 31, 2021: 1) Store Supplies on hand on December 31, 2021, amounted to $800,000. 2) Insurance of $2,660,000 was paid on January 1, 2021, for the 14-months to February 28, 2022 3) Prepaid rent expired December 31, 2021, amounted to $2,100,000 4) The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000. 5) The delivery van cost relates to two Toyoda Vans purchased for $2,000,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the van's depreciation charges and their expected useful life is 10 years or 100 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both $241,592 each. On September 1, 2021, the company sold one of the vans to ZM Co for $680,000 on credit. Round off answers to the nearest dollar. 6) Salaries earned by employees and not yet paid amounted to $120,000 on Dec 31, 2021. 7) Accrued interest expense as of December 31, 2021, $145,000. 8) On Dec 31, 2021, $1,350,000 of the previously unearned sales revenue had been earned 9) The aging of the Accounts Receivable schedule on Dec 31, 2021, indicated that the Allowance for Bad Debts should be $500,000 10) A physical count of inventory was done on December 31, 2021, after making all the other adjustments and this revealed that there was $4,700,000 worth of inventory on hand at this point.