Selected account balances from the December 31, 2015, Gracy Company trial balance are listed below: Debit Credit
Question:
Selected account balances from the December 31, 2015, Gracy Company trial balance are listed below:
Debit | Credit | |
Inventory, January 1, 2015 | $12,500 | |
shopping | 25,000 | |
salary expenses | 5,000 | |
Rental costs | 3,250 | |
General and adminsitrative expenses | 2,500 | |
Sales | $61,000 | |
Distributed Dividends | 3500 |
In addition, the following information is available:
· | The value of the inventory as of December 31, 2015 is $7,500. |
· | $890 of salaries have been accrued as of December 31. |
· | On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance. |
· | On December 1, the company paid 2 months' rent in advance. Payment of $1500 was charged to Rental Expenses. |
· | In December, a customer paid $1,000 in advance for merchandise that Gracy will ship in 2016. The amount received was credited to Sales. |
· | Gracy estimates that her bad debts represent 1% of sales (after all adjustments). |
· | The income tax rate is 30%. |
Using a general journal format, prepare the required adjusting entries.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta