Reference no: EM131755725

Question:

Could use some help on these adjusting entries.	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	240,300	-
Accounts Receivable	925,000	-
Allowance for Doubtful Accounts	-	49,000
Interest Receivable	-
Merchandise Inventory	187,500	-
Prepaid Insurance	9,000	-
Prepaid Advertising	-	-
Prepaid Rent	-	-
Office Supplies	7,800	-
Note Receivable	75,000	-
Available for Sale Securities	380,000	-
Office Building	4,250,000	-
Accumulated Depreciation - Office Building	-	221,500
Storage Building	1,650,000	-
Accumulated Depreciation - Storage Building	-	-
Land	450,000	-
Leasehold Improvements	190,000	-
Accumulated Depreciation - Leasehold Improvements	-	-
Office Equipment	125,000	-
Accumulated Depreciation - Office Equipment	-	42,000
Patent	250,000	-
Accounts Payable	-	145,000
Sales Tax Payable	-	-
Salaries Payable	-	-
Payroll Taxes Payable	-	-
Interest Payable	-	-
Income Tax Payable	-	-
Unearned Rent Revenue	-	96,000
Loan Payable - Onstar Bank	-	500,000
Loan Payable - Coldstar Bank	-	2,250,000
Common Stock	-	425,000
Additional Paid in Capital	-	2,800,000
Retained Earnings	-	1,379,420
Accumulated Other Comprehensive Income	-	8,500
Dividends	280,000	-
Sales	-	4,380,250
Sales Returns and Allowances	19,500	-
Sales Discounts	14,600	-
Cost of Goods Sold	1,817,900	-
Sales Salaries Expense	676,400	-
Office Salaries Expense	434,000	-
Advertising Expense	54,000	-
Depreciation Expense - Office Building	-	-
Depreciation Expense - Leasehold Improvements	-	-
Depreciation Expense - Office Equipment	-	-
Leasing Expense - Stores	132,000	-
Miscellaneous Selling Expense	16,950	-
Rent Expense - Storage Facility	18,000	-
Insurance Expense	2,000	-
Office Supplies Expense	28,500	-
Warranty Expense	5,000
Miscellaneous Administrative Expense	9,220	-
Rent Revenue	-	-
Interest Revenue on Note Receivable	-	-
Dividend Revenue on AFS Securities	-	18,000
Bad Debt Expense	67,000	-
	12,314,670	12,314,670

DeeDee does banking at three different financial institutions. The details are as DeeDee Double Entry

Bank	Account #	Balance
Coterica	123456	175,000
Coterica	123457	(10,000)
4th Bank	345689	82,000
Bank Two	397567	(6,700)

1. You also note the Board of Directors has restricted $27,000 of cash for future expansion. This $27,000 is part of the cash balance. The future expansion will not occur for several more years.

2. Based on your inquiries, you note that $67,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $67,000 and credited Accounts Receivable for $67,000. When $15,000 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, DeeDee determines that uncollectible accounts are $89,000 at the end of 2017. (Replace the X with the last digit of your student number).

3. Per a physical count of office supplies, $4,859 (enter the last two digits of your student number) of supplies remained at the end of 2017. The balance on the worksheet in the office supplies account represents last years ending balance. During the year, $28,500 of office supplies were purchased and immediately expensed.

4. Because of strong demand and a need for additional inventory, DeeDee needed some temporary additional storage space so on June 1, 2017 they rented a unit for an annual rate of $18,000 and they paid the entire amount up front.