A B C D E F G H J K Credit Debit 41,760 Cash Accounts Receivable 84,260 Allowance for Doubtful Accounts 6,000 Supplies 8,200 Inventory 337,300 Prepaid Insurance 18,000 Equipment 422,000 Accumulated Depreciation-Equipment 118,000 Building 500,000 Accumulated Depreciation-Building 15,000 Land 100,000 Accounts Payable 93,560 3 Notes Payable (L/T Principle due 1/1/24) 270,000 Unearned Rent Revenue 24,000 Common Stock 110,000 1 Retained Earnings 265,000 2 Dividends 10,000 3 Sales Revenue 2,100,000 4 Rent Revenue 86,000 5 Cost of Goods Sold 937,440 6 Salaries and Wages Expense-sales 273,500 27 Advertising Expense-Sales 78,100 28 Utilities Expense-Administrative 49,000 29 Telecommunications-Administrative 32,000 30 Salaries and Wages Expense-administrative 196,000 31 32 + 3,087,560 3,087,560 50 33 34 35 36 37 Instructions: 38 1. Construct General Ledger T-accounts and enter the balances shown. 39 2. The following adjusting entries have been identified: 40 41 a. Bad debt expense is estimated to be $6,000. (sales expense) 42 b. Annual depreciation expense on the Equipment is $13,000 and annual depreciation expense for building is $8,000. (administrative expense) 43 c. Prepaid Insurance is for 2 years of insurance paid on 1/1/20. Record the amount for 2020. (administrative expense) 44 d. The note payable ($270,000) has interest of 7% per year (simple interest) and the interest is payable on 1/1/21. Record the interest for 2020. 45 e. Salaries and wages earned but unpaid as of year-end are $9,500 (sales) and $4.500 (administrative). 46 f. At year-end, $1,100 of Supplies remain on hand. (administrative expense) Sheet1 Rondu Sheet2 Sheet3 of 7% per year (simple interest) and the interest is payable on 1/1/21. Record the interest for 2020. 45 e. Salaries and wages earned but unpaid as of year-end are $9,500 (sales) and $4,500 (administrative). 46 1. At year-end, $1,100 of Supplies remain on hand. (administrative expense) 47 g.$10,000 of the unearned rent revenue was earned as of 12/31/20. 48 h. Utilities expense incurred for December, but unpaid and unrecorded was $3,000. (administrative expense) 49 Ignore Inconse Taxes for purposes of this assignment 50 51 Weighted Average Common Shares Outstanding 12/31/20 is 5,000. 52 53 Prepare the adjusting journal entries (include explanations) and post the entries to the appropriate general ledger T-accounts (construct additional T-accounts as necessary). 54 55 3. Prepare an adjusted trial balance. 56 4. Prepare a classified balance sheet, a statement of retained earnings and a multi-step income statement in good form 57 5. Prepare closing journal entries and post to the T-accounts. 58 6. Prepare a post-closing trial balance, 59 60 You should use Excel or a similar spreadsheet program to prepare your work. (your T-accounts can be prepared by hand and postings can be by hand) Your grade will be based on both them 61