Use this worksheet to complete the following two exercises for Assessment 2. Refer to the instructions in the course for submitting your assessment.

Exercise 2-1

For this exercise, use the following fiscal year-end unadjusted trial balance for the Bigelow Company.

Note: Rent and salary expenses are divided equally between general/administrative and selling activities. Bigelow uses a perpetual inventory system.

BIGELOW COMPANY Unadjusted Trial Balance April 30, 2012 (Fiscal year-end)
	Debit	Credit
Cash........................................................................	$2,150
Merchandise inventory..............................................	12,100
Store supplies..........................................................	4,600
Prepaid insurance.....................................................	2,100
Store equipment.......................................................	42,350
Accumulated depreciation—Store equipment.............		$12,000
Accounts payable.....................................................		8,700
Common stock.........................................................		4,500
Retained earnings.....................................................		25,400
Dividends................................................................	1,800
Sales.......................................................................		108,500
Sales discounts........................................................	950
Sales returns and allowances....................................	1,750
Cost of goods sold..................................................	36,300
Depreciation expense—Store equipment...................	0
Salaries expense......................................................	32,500
Insurance expense....................................................	0
Rent expense...........................................................	13,800
Store supplies expense............................................	0
Advertising expense.................................................	8,700	_______
Totals......................................................................	$159,100	$159,100

1.Prepare adjusting journal entries for the following:

a. $1,700 of store supplies remaining at the end of the fiscal year.

b. $1,800 of expired insurance for the fiscal year (administrative expense).

c. $1,250 depreciation expense on store equipment for the fiscal year (selling expense).

d.$11,200 of merchandise inventory remaining at the end of the fiscal year (based on a physical count to estimate shrinkage).

Adjustment (a):

Adjustment (b):

Adjustment (c):

Adjustment (d):

Answer rating: 100% (QA)

Adj a Supplies exp 4600 1700 Supplies 290... View the full answer