The following trial balance was taken from the books of Fisk Corporation on December 31, 2020...
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The following trial balance was taken from the books of Fisk Corporation on December 31, 2020 Account Debit Credit $ 9,000 40,000 Cash Accounts Receivable Notes Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation--Equip. Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense Rent Expense Totals 10,000 34,000 4,800 100,000 126,000 50,000 12,800 $386.600 386.600 15,000 12,600 44,000 55,000 260,000 At year end, the following items have not yet been recorded: 1) Estimated bad debts, 5% of accounts receivable. 2) Depreciation on equipment, 10% per year on original cost. 3) Interest at 6% is receivable on the note for one full year. Assume that the firm uses the Allowance For Doubtful Accounts Questions: (a) Prepare the necessary adjusting entries. (b) Prepare the necessary closing entries. Then, compute ending balance of Retained Earnings? Show your calculation. The following trial balance was taken from the books of Fisk Corporation on December 31, 2020 Account Debit Credit $ 9,000 40,000 Cash Accounts Receivable Notes Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation--Equip. Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense Rent Expense Totals 10,000 34,000 4,800 100,000 126,000 50,000 12,800 $386.600 386.600 15,000 12,600 44,000 55,000 260,000 At year end, the following items have not yet been recorded: 1) Estimated bad debts, 5% of accounts receivable. 2) Depreciation on equipment, 10% per year on original cost. 3) Interest at 6% is receivable on the note for one full year. Assume that the firm uses the Allowance For Doubtful Accounts Questions: (a) Prepare the necessary adjusting entries. (b) Prepare the necessary closing entries. Then, compute ending balance of Retained Earnings? Show your calculation.
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Answer Solution a Account Titles Debit Credit Bad Debt Expense 2000 40... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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