Select account balances from the December 31, 2015, trial balances of the Gracy Company are listed below: Debit Credit Inventory, January 1, 2015 $12,500 Purchases 25,000 Salaries Expense 5,000 Rent Expense 3,250 General and Administrative Expenses 2,500 Sales $61,000 Dividends Declared 3,500 In addition, the following information is available: - The cost of the ending inventory at December 31, 2015, is $7,50- UVI Online ACC 3010 Mid-term Assessment 2 - $890 of salaries has accrued of December 31. - On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance. - On December 1, the company paid 2 months’ rent in advance. The $1,400 payment was debited to Rent Expense. - In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales. - Gracey estimates its bad dets to be 1% of sales (after all adjustments) - The insurance tax rate is 30%. Gracy Company uses a periodic inventory system. Required: Using a general journal format, prepare the required adjusting entries.
Select account balances from the December 31, 2015,
are listed below:
Debit Credit
Inventory, January 1, 2015 $12,500
Purchases 25,000
Salaries Expense 5,000
Rent Expense 3,250
General and Administrative Expenses 2,500
Sales $61,000
Dividends Declared 3,500
In addition, the following information is available:
- The cost of the ending inventory at December 31, 2015, is $7,50-
UVI Online ACC 3010 Mid-term Assessment 2
- $890 of salaries has accrued of December 31.
- On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was
debited to Prepaid Insurance.
- On December 1, the company paid 2 months’ rent in advance. The $1,400 payment was
debited to Rent Expense.
- In December, a customer paid $1,000 in advance for merchandise that will be shipped by
Gracy in 2016. The amount received was credited to Sales.
- Gracey estimates its bad dets to be 1% of sales (after all adjustments)
- The insurance tax rate is 30%.
Gracy Company uses a periodic inventory system.
Required: Using a general journal format, prepare the required
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