I am stuck on this adjusted trial balance sheet exercise. I am attaching images. I have populated all the fields that I can. I have missing entries due to the fact that I am brain dead when it comes to Title/Description. The last image shows the fields that are missing with yellow highlights. I have included all the setup information in the images as well.
I am stuck on this adjusted trial balance sheet exercise. I am attaching images. I have populated all the fields that I can. I have missing entries due to the fact that I am brain dead when it comes to Title/Description. The last image shows the fields that are missing with yellow highlights. I have included all the setup information in the images as well.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I am stuck on this adjusted
Transcribed Image Text:**Educational Website Content: Understanding Journal Entries and Adjusted Trial Balances**
---
**Journal Entries**
The following journal entries represent various financial transactions for a company. Each entry includes a debit and a credit component, which must be equal, ensuring the accounting equation remains balanced.
1. **Interest Payable**
- Debit: Interest Payable $220
- Credit: Cash $220
2. **Inventory Purchase**
- Debit: Inventory $229,768
- Credit: Accounts Payable $229,768
3. **Cash Sales Transaction**
- Debit: Cash $412,368
- Credit: Sales Tax Payable $25,168
- Credit: Sales Revenue $387,200
*(To record sales revenue.)*
4. **Accounts Payable Payment**
- Debit: Accounts Payable $202,400
- Credit: Cash $202,400
5. **Sales Tax Payment**
- Debit: Sales Taxes Payable $14,960
- Credit: Cash $14,960
6. **Operating Expenses Payment**
- Debit: Other Operating Expenses $26,400
- Credit: Cash $26,400
7. **Salaries and Wages Payment**
- Debit: Salaries and Wages $56,000
- Credit: FICA Taxes Payable $4,284
- Credit: Federal Income Taxes Payable $7,840
- Credit: Salaries and Wages Payable $43,876
8. **Interest Expense**
- Debit: Interest Expense $220
- Credit: Interest Payable $220
9. **Insurance Payment**
- Debit: Insurance Expense $440
- Credit: Prepaid Insurance $440
10. **Depreciation Recognition**
- Debit: Depreciation Expense $528
- Credit: Accumulated Depreciation Expense $528
11. **Payroll Tax Expenses**
- Debit: Payroll Tax Expense $7,644
- Credit: State Unemployment Taxes Payable $3,024
- Credit: Federal Unemployment Taxes Payable $336
- Credit: FICA Taxes Payable $4,284
---
**Adjusted Trial Balance for Avenger on January 31, 2021**
The adjusted trial balance is a list of all accounts and their balances after adjusting entries have been made. It ensures that debits
Transcribed Image Text:**Balance Sheet and Financial Transactions—Avenger LLC**
### Balance Sheet as of December 31, 2021
| **Assets** | **Liabilities and Owner's Equity** |
|--------------------------|------------------------------------|
| **Cash**: $26,400 | **Accounts Payable**: $12,100 |
| **Inventory**: $27,060 | **Interest Payable**: $220 |
| **Prepaid Insurance**: $5,280 | **Notes Payable**: $44,000 |
| **Equipment**: $33,440 | **Owner's Capital**: $35,860 |
| **Total Assets**: $92,180| **Total Liabilities and Owner’s Equity**: $92,180 |
### January 2022 Transactions
1. **Interest Payment**: Paid $220 interest on the note payable (due December 31, 2023) on January 1, 2022.
2. **Inventory Purchase**: Purchased $229,768 of inventory on account.
3. **Sales and Tax Collection**: Sold products for $387,200 cash; cost of inventory sold was $233,200, and $25,168 was collected in sales taxes.
4. **Accounts Payable**: Paid $202,400 in accounts payable.
5. **Sales Tax Payment**: Paid $14,960 in sales taxes to the state.
6. **Operating Expenses**: Paid other operating expenses amounting to $26,400.
7. **Payroll**: On January 31, 2022, monthly salaries and wages were $56,000, with 7.65% FICA taxes applied, totaling $7,840 federal income tax withheld. Salaries and wages are payable on February 1.
### Adjustment Data
8. **Interest Expense**: $220 interest incurred in January on notes payable.
9. **Prepaid Insurance**: Insurance for 2022 was paid in advance on December 31, 2021.
10. **Equipment Depreciation**: Equipment acquired on December 31, 2021, will depreciate over five years with a salvage value of $1,760, using the straight-line method.
11. **Payroll Taxes**: Employer's payroll taxes include 7.65% FICA, 5.4% state unemployment tax, and 0.6% federal unemployment tax
Expert Solution
Step 1
The Trial Balance is the method to identify any mistakes or omission made in recording any transaction. The total of te credit and debit must always be equal
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education