tive Problems Text: P 2-3 The Salem Bread Company produces and sells various bak

Question

tive Problems Text: P 2-3 The Salem Bread Company produces and sells various bakery products to restaurants. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2013, appears below. Debits 82,000Credits 85,000 4,000 2,300 80,000 Account Title Cash Accounts receivabl. Prepaid rent .. Supplies. Inventory Equipment. Accumulated depreciation-equipment... Accounts payable 225,000 77,000 38,000 5,000 50,000 Wages payable. Note payable.. Interest payable.. 3,000 100,000 127,300 256,000 Common stock Retained earnings Sales revenue .. Cost of goods sold... Wage expense Rent expense.. Depreciation expense .. 145,000 62,000 10,000 Interest expense Supplies expense. Miscellaneous expense . 3,000 8,000 656,300 Totals 656,300

Explanation / Answer

Depreciation

To accumulated depreciation

(Being depreciation for the year booked)

22000

Salaries and wages expenses

To salaries and wages payable (7000-5000)

( Being outstanding salaries and wages booked)

Interest expenses

To interest payable (50000*8%*9/12)

(Being interest expenses on interest payable booked for 9 months)

Supplies expenses

To supplies (2300-1000)

(Being supplies expenses booked)

Deferred revenue

To sales revenue

(Being deferred revenue transferred to sales revenue)

Rent expenses (for December month)

To prepaid rent

(Being December month rent transferred to expenses from prepaid rent)

Transactions particular Debit Credit 1.

Depreciation

To accumulated depreciation

(Being depreciation for the year booked)

22000

22000 2.

Salaries and wages expenses

To salaries and wages payable (7000-5000)

( Being outstanding salaries and wages booked)

2000 2000 3.

Interest expenses

To interest payable (50000*8%*9/12)

(Being interest expenses on interest payable booked for 9 months)

3000 3000 4.

Supplies expenses

To supplies (2300-1000)

(Being supplies expenses booked)

1300 1300 5.

Deferred revenue

To sales revenue

(Being deferred revenue transferred to sales revenue)

3000 3000 6.

Rent expenses (for December month)

To prepaid rent

(Being December month rent transferred to expenses from prepaid rent)

1000 1000

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