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Prepare the necessary adjusting journal entries on June 30, 2020.                 [Narrations are not required]                                         Prepare the Adjusted Trial balance for the period ending June 30, 2020.

Prepare the necessary adjusting journal entries on June 30, 2020.                 [Narrations are not required]                                         Prepare the Adjusted Trial balance for the period ending June 30, 2020.

FINANCIAL ACCOUNTING
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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Prepare the necessary adjusting journal entries on June 30, 2020. 

               [Narrations are not required]                                        

Prepare the Adjusted Trial balance for the period ending June 30, 2020.

 

The following additional information is available at June 30, 2020: (i) Store Supplies on hand at June 30, 2020 amounted to $25,000. (ii) Insurance of $72,000 was paid on May 1, 2020 for the 6-months to October 31, 2020 (ii) Rent was paid on March 31, 2020 for the 4-months to July 31, 2020. (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $160,000. (v) The computer equipment was acquired on March 31, 2020 and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $30,000 (vi) Salaries earned by employees not yet paid amounted to $14,000 at June 30, 2020. (vii) Accrued interest expense as of June 30, 2020, $9,000. (viii) At June 30, 2020, $48,000 of the previously unearned sales revenue had been earned (ix)The aging of the Accounts Receivable schedule at June 30, 2020 indicated that the Allowance for Bad Debts should be $19,500 (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $186,000 worth of inventory on hand at June 30,2020 Other data: (xi) The business is expected to make principal payments totalling $90,000 towards the loan during the fiscal year to June 30 ,2021
Transcribed Image Text:The following additional information is available at June 30, 2020: (i) Store Supplies on hand at June 30, 2020 amounted to $25,000. (ii) Insurance of $72,000 was paid on May 1, 2020 for the 6-months to October 31, 2020 (ii) Rent was paid on March 31, 2020 for the 4-months to July 31, 2020. (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $160,000. (v) The computer equipment was acquired on March 31, 2020 and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $30,000 (vi) Salaries earned by employees not yet paid amounted to $14,000 at June 30, 2020. (vii) Accrued interest expense as of June 30, 2020, $9,000. (viii) At June 30, 2020, $48,000 of the previously unearned sales revenue had been earned (ix)The aging of the Accounts Receivable schedule at June 30, 2020 indicated that the Allowance for Bad Debts should be $19,500 (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $186,000 worth of inventory on hand at June 30,2020 Other data: (xi) The business is expected to make principal payments totalling $90,000 towards the loan during the fiscal year to June 30 ,2021
Ready Hospital Supplies Trial Balance as at June 30, 2020 Dr $ Cr $ Cash 127,000 151,000 Accounts Receivable Allowance for Bad-Debts 12,500 Merchandise Inventory Store Supplies Prepaid Insurance Prepaid Rent Furniture & Fixtures 187,500 58,000 72,000 56,000 800,000 Accumulated Depreciation: Furniture & Fixtures Computer Equipment Accumulated Depreciation: Computer Equipment Accounts Payable Salaries Payable Interest Payable 256,000 450,000 133,500 27,000 82,000 360,000 898,500 Unearned Sales Revenue Long-Term Loan Eva Ready, Capital Eva Ready, Withdrawals 104,000 Sales Revenue 1,043,000 7,000 5,500 403,000 165,000 Sales Discount Sales Returns & Allowances Cost of Goods Sold Salaries Expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense – Furniture & Fixtures Depreciation Expense – Computer Equipment Store Supplies Expense Gain on Disposal of Old Computer Equipment Bad-Debt Expense Interest Expense 87,500 126,000 14,000 27,000 Total 2,826,500 2,826,500
Transcribed Image Text:Ready Hospital Supplies Trial Balance as at June 30, 2020 Dr $ Cr $ Cash 127,000 151,000 Accounts Receivable Allowance for Bad-Debts 12,500 Merchandise Inventory Store Supplies Prepaid Insurance Prepaid Rent Furniture & Fixtures 187,500 58,000 72,000 56,000 800,000 Accumulated Depreciation: Furniture & Fixtures Computer Equipment Accumulated Depreciation: Computer Equipment Accounts Payable Salaries Payable Interest Payable 256,000 450,000 133,500 27,000 82,000 360,000 898,500 Unearned Sales Revenue Long-Term Loan Eva Ready, Capital Eva Ready, Withdrawals 104,000 Sales Revenue 1,043,000 7,000 5,500 403,000 165,000 Sales Discount Sales Returns & Allowances Cost of Goods Sold Salaries Expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense – Furniture & Fixtures Depreciation Expense – Computer Equipment Store Supplies Expense Gain on Disposal of Old Computer Equipment Bad-Debt Expense Interest Expense 87,500 126,000 14,000 27,000 Total 2,826,500 2,826,500
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