PROBLEM 4 ADJUSTING AND CLOSING ENTRIES (20 points) The following is the unadjus

Question

PROBLEM 4 ADJUSTING AND CLOSING ENTRIES (20 points) The following is the unadjusted trial balance for Dot.Com Corporation on December 31, 2018 Account Debit Credit s 15,000 50,000 Cash Accounts Receivable Allowance for Doubtful Accounts 2,000 Inventory, January 1, 2008 Prepaid Insurance Property, Plant &Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Sales Purchases Salaries Expense Insurance Expense 6,000 1,000 98,000 24,000 10,000 30,000 70,000 269,000 140,000 75,000 16,000 1,000 $405,000 Other Expenses Totals $405, 000 At year-end the following items have not yet been recorded a. Inventory value as of December 31st is $2,000 (periodic inventory procedures) b. Depreciation for the year was $15,000 c. The value of prepaid insurance as of December 31t is $2,000 d. Estimated uncollectible accounts as of year end is $5,000 e. Accrued salaries payable at December 31t are $2,000. REQUIRED (a) (b) (c) (d) Prepare the necessary adjusting entries. Prepare the necessary closing entries. Determine Net Income for 2018 S Determine Retained Earnings after closing entries S

Explanation / Answer

Question a

Question b

Question c

Profit for the year = 10,000

Question d

Retained Earnings = 70000 + 10000 = 80,000

Debit Credit 1 Closing Stock 2000 Cost of Sales expense 144000 Opening Stock 6000 Purchases 140000 2 Depreciation Expense 15000 Accumalated Depreciation 15000 3 Prepaid Insurance 1000 Cash 1000 4 Bad Debt Expenses 3000 Allowance for Doubtful Debts 3000 5 Salary Expense 2000 Accrued Salaries Payable 2000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.