Store Supplies on hand at June 30, 2022 amounted to $98,400. Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 Rent was prepaid on April 1, 2022, for 5-months to August 2022. The furniture and fixtures have an estimated useful life of 5 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on March 31, 2022, and is being depreciated over 10 years on the double-declining balance method of depreciation, down to a residue of $15,000 Salaries earned by employees not yet paid amounted to $48,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $45,000. On June 30, 2022, $99,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $70,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30 ,2023 Prepare the necessary adjusting journal entries on June 30, 2022. [Narrations are not required] 2. Prepare the Adjusted Trial balance at June 30, 2022.

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Description: Store Supplies on hand at June 30, 2022 amounted to $98,400. Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 Rent was prepaid on April 1, 2022, for 5-months to August 2022. The furniture and fixtures have an estimated use

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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Store Supplies on hand at June 30, 2022 amounted to $98,400.
Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022
Rent was prepaid on April 1, 2022, for 5-months to August 2022.
The furniture and fixtures have an estimated useful life of 5 years and is being depreciated on the straight-line method down to a residual value of $10,000.
The motor truck was acquired on March 31, 2022, and is being depreciated

over 10 years on the double-declining balance method of depreciation, down to

a residue of $15,000

Salaries earned by employees not yet paid amounted to $48,000 at June 30, 2022.
Accrued interest expense as of June 30, 2022, $45,000.
On June 30, 2022, $99,000 of the previously unearned sales revenue had been earned.
The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the

Allowance for Bad Debts should be $70,000.

After making all other adjustments, a physical count of inventory was done, which

reveals that there was $1,100,000 worth of inventory on hand at June 30,2022

Other data:

(xi) The business is expected to make principal payments totalling $250,000 towards the

loan during the fiscal year to June 30 ,2023

Prepare the necessary adjusting journal entries on June 30, 2022.

[Narrations are not required]

2. Prepare the Adjusted Trial balance at June 30, 2022.

A/C Name
Cash
Plant Universe Ltd- Begonia Branch
Trial Balance as at June 30, 2022
Trial Balance
DR
CR
180,000
Accounts receivable
420,000
Allowance for bad debt
33.000
Merchandise Inventory
1,000,000
Store Supplies
120,000
Prepaid Insurance
115,500
Prepaid rent
177,500
Fumiture and fixtures
600,000
Accumulated depreciation-Fumiture and Fixtures
118,000
Motor Truck
1,200,000
Accumulated depreciation Motor Truck
Accounts payable
33.000
Salary payable
Interest payable
45,000
Uneamed Sales revenue
185,000
Long-term loan
Capital
Withdrawals
Sales revenue
750.000
2,570,000
95,000
2,502,000
Sales discount
102,000
Sales returns and allowances
98,000
Cost of goods sold
850,000
Salaries expense
455,000
Insurance Expense
165,000
365,000
319,500
Utilities Expense
Rent Expense
Depreciation Expense - Furniture & Fixtures
Depreciation Expense-Motor Truck
Store Supplies Expense
Gain on Disposal of Old Motor Truck
Bad-Debt Expense
Interest Expense
26,500
6,262,500 6,262.500

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