The unadjusted trial balance of Sheffield Enterprises for the year ended Decembe
ID: 2390897 • Letter: T
Question
The unadjusted trial balance of Sheffield Enterprises for the year ended December 31, 2017, follows: SHEFFIELD ENTERPRISES Trial Balance December 31, 2017 Credit Debit $15,000 19,200 37,050 3,000 2,950 150,000 Cash Accounts receivable Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Furniture Accumulated depreciation-furniture Accounts payable Unearned revenu Mortgage payable S. Kim, capital S. Kim, drawings Sales Sales returns and allowances Sales discounts Cost of goods sold Interest expense Salaries expense Utilities expense $35,000 45,000 18,000 33,200 4,000 125,000 46,200 48,000 265,000 2,500 3,275 153,000 6,875 35,450 5,100 $526,400 $526,400 Additional information: 1. There is $770 of supplies on hand on December 31, 2017. 2. The one-year insurance policy was purchased on March 1, 2017. 3. Depreciation expense for the year is $10,200 for the equipment and $4,500 for the furniture 4. Accrued interest expense at December 31, 2017, is $675Explanation / Answer
Adjusting Entries
No
Date
Accounts Title and Explanation
Debit
Credit
1
31-Dec
Supplies Expenses
$ 2,180.00
Supplies
$ 2,180.00
(Supplies Consumed during the Year)
2
31-Dec
Insurance Expenses
$ 2,500.00
Prepaid Insurance
$ 2,500.00
(Insurance expired for 10 months)
3
31-Dec
Depreciation expenses-Equipment
$ 10,200.00
Depreciation expenses-Furniture
$ 4,500.00
Accumulated depreciation-Equipment
$ 10,200.00
Accumulated depreciation-Furniture
$ 4,500.00
(depreciation for the year Charged)
4
31-Dec
Interest Expenses
$ 675.00
Accrued Expenses
$ 675.00
(Accrued interest fot the year)
5
31-Dec
Unearned Revenue
$ 3,200.00
Sales
$ 3,200.00
(Sales revenue)
5
31-Dec
Cost of Goods Sold Account
$ 1,950.00
Merchandise Inventory
$ 1,950.00
(Cost of goods sold Recorded)
6
31-Dec
Loss of Inventory
$ 2,450.00
Merchandise Inventory
$ 2,450.00
(Cost of goods sold Recorded for the year being Inventory Consumed)
Working note for entry number 6
Opening balance of Merchandise Inventory
$ 37,050.00
Less -Used For unearned revenue sales
$ 1,950.00
Closing inventory
$ 32,650.00
Loss Of inventory (balancing Figure)
$ 2,450.00
Adjusting Entries
No
Date
Accounts Title and Explanation
Debit
Credit
1
31-Dec
Supplies Expenses
$ 2,180.00
Supplies
$ 2,180.00
(Supplies Consumed during the Year)
2
31-Dec
Insurance Expenses
$ 2,500.00
Prepaid Insurance
$ 2,500.00
(Insurance expired for 10 months)
3
31-Dec
Depreciation expenses-Equipment
$ 10,200.00
Depreciation expenses-Furniture
$ 4,500.00
Accumulated depreciation-Equipment
$ 10,200.00
Accumulated depreciation-Furniture
$ 4,500.00
(depreciation for the year Charged)
4
31-Dec
Interest Expenses
$ 675.00
Accrued Expenses
$ 675.00
(Accrued interest fot the year)
5
31-Dec
Unearned Revenue
$ 3,200.00
Sales
$ 3,200.00
(Sales revenue)
5
31-Dec
Cost of Goods Sold Account
$ 1,950.00
Merchandise Inventory
$ 1,950.00
(Cost of goods sold Recorded)
6
31-Dec
Loss of Inventory
$ 2,450.00
Merchandise Inventory
$ 2,450.00
(Cost of goods sold Recorded for the year being Inventory Consumed)
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