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Problem 5-4A Adjusting entries and multi-step income statement-perpetual LO5 Use the unadjusted trial balance of Electric Bike on December 31, 2020. Debit Credit $ 7,600 22,165 34,100 2,165 Cash Accounts receivable Merchandise inventory Store supplies office supplies Prepaid Insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden LE, capital Breeden Li, withdrawals Interest Income Sales Sales returns and allowances Cost of goods sald Salaries expense Supplies expense Depreciation expense, equipment Insurance expense 925 4,755 68,990 59,500 4,5 380,660 95,000 20,600 ● · $ 13,155 7,500 @ 162,415 260 526,500 $709,830 $709,630 Required: 1. Record adjusting entries for the following information. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its fe of $13.990 b. The balance in the Prepaid insurance account was reviewed and it was determined that $330 was unused at December 31, 2020 CA review of the store supplies on December 31, 2020, revealed a balance on hand of $1,850; a similar examination of the office supplies showed that $715 had been used salaries payable $1.550 A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33.350

Problem 5-4A Adjusting entries and multi-step income statement-perpetual LO5 Use the unadjusted trial balance of Electric Bike on December 31, 2020. Debit Credit $ 7,600 22,165 34,100 2,165 Cash Accounts receivable Merchandise inventory Store supplies office supplies Prepaid Insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden LE, capital Breeden Li, withdrawals Interest Income Sales Sales returns and allowances Cost of goods sald Salaries expense Supplies expense Depreciation expense, equipment Insurance expense 925 4,755 68,990 59,500 4,5 380,660 95,000 20,600 ● · $ 13,155 7,500 @ 162,415 260 526,500 $709,830 $709,630 Required: 1. Record adjusting entries for the following information. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its fe of $13.990 b. The balance in the Prepaid insurance account was reviewed and it was determined that $330 was unused at December 31, 2020 CA review of the store supplies on December 31, 2020, revealed a balance on hand of $1,850; a similar examination of the office supplies showed that $715 had been used salaries payable $1.550 A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33.350

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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Problem 5-4A Adjusting entries and multi-step income statement-perpetual LO5 Use the unadjusted trial balance of Electric Bike on December 31, 2020. Cash Accounts receivable Merchandise inventory Store supplies office supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden Lf, capital Breeden Li, withdrawals Interest Income Sales Sales returns and allowances Cost of goods sold Salaries expense Rent expense Supplies expense Depreciation expense, equipment Insurance expense Totals Debit $ 7,600 22,165 34,100 2,165 925 4,755 68,990 59,500 4,570 380,660 95,000 28,600 0 0 Credit $ 13,155 7,500 0 162,415 260 526,500 $709,830 $709,050 Required: 1. Record adjusting entries for the following information. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $13,990 b. The balance in the Prepaid Insurance account was reviewed and it was determined that $330 was unused at December 31, 2020 c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $1,850, a similar examination of the office suppiles showed that $715 had been used d. Accrued salaries payable. $1.550 A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33.350. O
Transcribed Image Text:Problem 5-4A Adjusting entries and multi-step income statement-perpetual LO5 Use the unadjusted trial balance of Electric Bike on December 31, 2020. Cash Accounts receivable Merchandise inventory Store supplies office supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden Lf, capital Breeden Li, withdrawals Interest Income Sales Sales returns and allowances Cost of goods sold Salaries expense Rent expense Supplies expense Depreciation expense, equipment Insurance expense Totals Debit $ 7,600 22,165 34,100 2,165 925 4,755 68,990 59,500 4,570 380,660 95,000 28,600 0 0 Credit $ 13,155 7,500 0 162,415 260 526,500 $709,830 $709,050 Required: 1. Record adjusting entries for the following information. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $13,990 b. The balance in the Prepaid Insurance account was reviewed and it was determined that $330 was unused at December 31, 2020 c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $1,850, a similar examination of the office suppiles showed that $715 had been used d. Accrued salaries payable. $1.550 A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33.350. O
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