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:

Record adjusting entries for the following information.

a. A review of the store supplies on December 31, 2017, revealed a balance on hand of $1,940; a similar examination of the office supplies showed that $700 had been used. 

b. The balance in the Prepaid Insurance account was reviewed and it was determined that $315 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 a residual value at the end of its life of $14,290. 

d. Accrued salaries payable, $1,700.

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

Answer rating: 100% (QA)

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