Use the unadjusted trial balance of Jumbo s on December 31, 2017.

	Debit	Credit
Cash	$8,900
Accounts receivable	23,465
Merchandise inventory	35,400
Store supplies	2,815
Office supplies	855
Prepaid insurance	4,055
Equipment	83,290
Accumulated depreciation, equipment		$14,455
Accounts payable		8,800
Salaries payable		0
Sally Fowler, capital		182,965
Sally Fowler, withdrawals	66,000
Interest income		390
Sales		533,000
Sales returns and allowances	5,870
Cost of goods sold	381,960
Salaries expense	97,100
Rent expense	29,900
Supplies expense	0
Depreciation expense, equipment	0
Insurance expense	0
Totals	$739,610	$739,610

Required:

1. Record adjusting entries for the following information.

a. A review of the store supplies on December 31, 2017, revealed a balance on hand of $2,240; a similar examination of the office supplies showed that $680 had been used.

b. The balance in the Prepaid Insurance account was reviewed and it was determined that $295 was unused at December 31, 2017.

c. The records show that the equipment was estimated to have a total estimated useful life of 10 years with resale value at the end of its life of $15,290.

d. Accrued salaries payable, $2,200.

e. A count of the merchandise inventory revealed a balance on hand on December 31, 2017, of $34,520.

Answer rating: 100% (QA)

Sure here are the adjusting entries for each piece of information provid... View the full answer