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

Instructions(a) Construct T-accounts and enter the balances shown.(b) Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.) Open additional T-accounts as necessary. (The books are closed yearly on December 31.)(1) Bad debt expense is estimated to be $1,400.(2) Equipment is depreciated based on a 7-year life (no salvage value).(3) Insurance expired during the year $2,550.(4) Interest accrued on notes payable $3,360.(5) Sales salaries and wages earned but not paid $2,400.(6) Advertising paid in advance $700.(7) Office supplies on hand $1,500, charged to Supplies Expense when purchased.(c) Prepare closing entries and post to theaccounts.

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NEW YORK BOUTIQUE TRIAL BALANCE DECEMBER 31 Credit Debit $ 18,500 32,000 Cash Accounts Receivable 24 Allowance for Doubtful Accounts 700 Inventory, December 31 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable 80.000 5,100 84,000 35.000 28,000 Common Stock 80,600 Retained Earnings 10.000 Sales Revenue 600,000 Cost of Goods Sold Salaries and Wages Expense (sales) Advertising Expense Salaries and Wages Expense (administrative) Supplies Expense 408,000 50,000 6,700 65,000 5,000 $754,300 $754,300