Reference no: EM131827724

Problem - Presented below is the December 31 trial balance of New York Boutique.

NEW YORK BOUTIQUE TRIAL BALANCE DECEMBER 31
	Debit	Credit
Cash	$ 18,500
Accounts Receivable	32,000
Allowance for Doubtful Accounts		$ 700
Inventory, December 31	80,000
Prepaid Insurance	5,100
Furniture and Equipment	84,000
Accumulated Depreciation-Furniture and Equipment		35,000
Notes Payable		28,000
Common Stock		80,600
Retained Earnings		10,000
Sales		600,000
Cost of Goods Sold	408,000
Sales Salaries Expense	50,000
Advertising Expense	6,700
Administrative Salaries Expense	65,000
Office Expense	5,000
	$754,300	$754,300

Prepare adjusting journal entries for the following and post to the T-accounts.

Bad debt expense is estimated to be $1,400.

Furniture and equipment is depreciated based on a 7-year life (no salvage value).

Insurance expired during the year $2,550.

Interest accrued on notes payable $3,360.

Sales salaries earned but not paid $2,400.

Advertising paid in advance $700.

Office supplies on hand $1,500, charged to Office Expense when purchased.