Refer to the data in Problem 5-12A.

In Problem 5-12A

The trial balance of Kim's Fine Gems pertains to December 31, 2014, and is shown here.

Additional data at December 31, 2014:
a. Rent expense for the year, $48,000.
b. The equipment has an estimated useful life of 10 years and is expected to have no value when it is retired from service.
c. Accrued salaries at December 31, $7,000.
d. Accrued interest expense at December 31, $2,600.
e. Inventory based on the inventory count on December 31, 2014, $351,200.
Required
1. Journalize the adjusting and closing entries.
2. Determine the December 31, 2014, balance of Capital for Kim's Fine Gems.

Transcribed Image Text:

KIM'S FINE GEMS Trial Balance December 31, 2014 Cash 6,200 Accounts receivable 57,000 Inventory Prepaid rent Equipment Accumulated amortization-equipment 345,000 28,000 108,000 $ 43,200 Accounts payable Salary payable Interest payable Note payable, long-term J. Kim, capital J. Kim, withdrawals 43,200 87,000 270,000 153,000 Sales revenue 835,400 Purchases 337,800 Salary expense Rent expense 118,600 44,000 Advertising expense Utilities expense Amortization expense 21,600 30,800 equipment Insurance expense Interest expense Miscellaneous expense 13,200 2,600 13,000 Total $1,278,800 $1,278,800