Date Account Debit Credit Adj. 1 12/31/21 Bad Debt Expense $ 481,250 Allowance for Doubtful Accounts $ 481,250 Date Debit Credit Account Insurance Expense Adj. 2 12/31/21 $ 100,000 Prepaid Insurance $ 100,000 Date Account Debit Credit Adj. 3 12/31/21 Depreciation Expense - Equipment $ 225,000 Accumulated Depreciation - Equipment $ 225,000 Date 12/31/21 Debit Credit Account Depreciatin Expense - Building $ 42,500 Adj. 4 Accumulated Depreciation - Building $ 42,500 Date Account Debit Credit $ 30,000 $ 40,000 Adj. 5 12/31/21 Mortgage Payable Interest Expense - Mortgage Cash $ 70,000
Date Account Debit Credit Adj. 1 12/31/21 Bad Debt Expense $ 481,250 Allowance for Doubtful Accounts $ 481,250 Date Debit Credit Account Insurance Expense Adj. 2 12/31/21 $ 100,000 Prepaid Insurance $ 100,000 Date Account Debit Credit Adj. 3 12/31/21 Depreciation Expense - Equipment $ 225,000 Accumulated Depreciation - Equipment $ 225,000 Date 12/31/21 Debit Credit Account Depreciatin Expense - Building $ 42,500 Adj. 4 Accumulated Depreciation - Building $ 42,500 Date Account Debit Credit $ 30,000 $ 40,000 Adj. 5 12/31/21 Mortgage Payable Interest Expense - Mortgage Cash $ 70,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Create T-Account.
![Date
Account
Debit
Credit
Adj. 1
12/31/21
Bad Debt Expense
$ 481,250
Allowance for Doubtful Accounts
$ 481,250
Date
Account
Debit
Credit
Adj. 2
12/31/21
Insurance Expense
$ 100,000
Prepaid Insurance
$ 100,000
Date
Account
Debit
Credit
Adj. 3
12/31/21
Depreciation Expense - Equipment
$ 225,000
Accumulated Depreciation - Equipment
$ 225,000
Date
Account
Debit
Credit
Adj. 4
12/31/21
Depreciatin Expense - Building
$ 42,500
Accumulated Depreciation - Building
$ 42,500
Date
Account
Debit
Credit
Adj. 5
12/31/21
Mortgage Payable
$
30,000
Interest Expense - Mortgage
$ 40,000
Cash
$ 70,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91a1897c-6376-41f7-9c6e-a56c1adb050a%2Fa12b3fcd-e1a3-4bf2-881c-fe4913e80811%2Fyy65e9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Date
Account
Debit
Credit
Adj. 1
12/31/21
Bad Debt Expense
$ 481,250
Allowance for Doubtful Accounts
$ 481,250
Date
Account
Debit
Credit
Adj. 2
12/31/21
Insurance Expense
$ 100,000
Prepaid Insurance
$ 100,000
Date
Account
Debit
Credit
Adj. 3
12/31/21
Depreciation Expense - Equipment
$ 225,000
Accumulated Depreciation - Equipment
$ 225,000
Date
Account
Debit
Credit
Adj. 4
12/31/21
Depreciatin Expense - Building
$ 42,500
Accumulated Depreciation - Building
$ 42,500
Date
Account
Debit
Credit
Adj. 5
12/31/21
Mortgage Payable
$
30,000
Interest Expense - Mortgage
$ 40,000
Cash
$ 70,000
![Date
Account
Debit
Credit
Adj. 6
12/31/21
Salary Expense
$ 490,000
Cash
$ 490,000
Date
Account
Debit
Credit
Long-Term Debt
Interest Expense - Long-Term Debt
$ 75,000
$ 175,000
Adj. 7
12/31/21
Cash
$ 250,000
Date
Account
Debit
Credit
Adj. 8
12/31/21
Inventory
$3,000,000
Cash
$2,600,000
Accounts Payable
$ 400,000
Date
Account
Debit
Credit
Adj. 9
12/31/21
Accounts Receivable
$1,000,000
Cash
$4,400,000
COGS
$2,100,000
Sales
$5,400,000
Inventory
$2,100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91a1897c-6376-41f7-9c6e-a56c1adb050a%2Fa12b3fcd-e1a3-4bf2-881c-fe4913e80811%2Fh99ifav_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Date
Account
Debit
Credit
Adj. 6
12/31/21
Salary Expense
$ 490,000
Cash
$ 490,000
Date
Account
Debit
Credit
Long-Term Debt
Interest Expense - Long-Term Debt
$ 75,000
$ 175,000
Adj. 7
12/31/21
Cash
$ 250,000
Date
Account
Debit
Credit
Adj. 8
12/31/21
Inventory
$3,000,000
Cash
$2,600,000
Accounts Payable
$ 400,000
Date
Account
Debit
Credit
Adj. 9
12/31/21
Accounts Receivable
$1,000,000
Cash
$4,400,000
COGS
$2,100,000
Sales
$5,400,000
Inventory
$2,100,000
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