Reference no: EM132619679
Question - The following trial balance was taken from te books of Cross Corporation at December 31, 2019;
Account Debit Credit
Cash $40,000
Accounts Receivable 108,000
Note Receivable 8,000
Allowance for Doubtful Accounts $1,800
Merchandise Inventory 54,000
Unexpired Insurance 4,800
Furniture and Equipment 1,38,000
Accumulated Depreciation 15,000
Accounts Payable 10,800
Common Stock 44,000
Retained Earnings 65,000
Sales 4,10,000
Cost of Goods Sold 1,28,000
Salaries Expense 53,000
Rent Expense 12,800
Total $546,600 $546,600
At year end, the following items have not yet been recorded.
1. Insurance expired during the year, $3,000.
2. Estimated bad debts, 1 percent of gross sales.
3. Depreciation on furniture and equipment, 10% per year.
4. Interest at 9% is receivable on the note for one full year.
5. Rent paid in advance at December 31, $6,800 (originally debited to expense).
6. Accrued salaries at December 31, $6,200.
Instructions -
a) Required the necessary adjusting entries.
b) Required the necessary closing entries.