Below is the balance sheet prior to adjusting entries. What would be the adjuste

Question

Below is the balance sheet prior to adjusting entries. What would be the adjusted trial with the adjusting entries below.

Adjusting Entries

No. Date Account Title Debit Credit 1 31-Dec Depreciation Expense 14,250 Accumulated Depreciation 14,250 2 31-Dec Income Tax Expense 3,250 Income Tax Payable 3,250 3 31-Dec Inventory, Ending 40,416 Cost of Goods Sold 40,416 4 31-Dec Unearned Revenue 10,000 Revenue 10,000 5 31-Dec Bad Debt Expense 1,000 Allowance for Doubtful Accounts 1,000 6 31-Dec Supplies Expense 400 Supplies 400 7 31-Dec Rent Expense (6,000*10)/24 2500 Prepaid Rent 2,500 8 31-Dec Salaries & Wages 1,500 Salaries & Wages Payable 1,500 9 31-Dec Interest Expense ((120,000*.03)*6/12) 1,800 Interest Payable 1,800

Explanation / Answer

Account Title DR CR Ref Cash 37,242 Notes Receivable 9,900 Accounts Receivable 41,800 Allowance for Doubtful Accounts 2700 5 Inventories 1,18,562 3 Prepaid Insurance 540 Prepaid Rent 4,000 7 Unearned Revenue 10,000 4 Investments in held-for-maturity securities 51,000 Land held for future development 60,500 Bad Debt Expense 1,000 5 Supplies Expense 400 Salaries & Wages 1,500 8 Salaries & Wages Payable 1500 8 Rent Expense 2,500 7 Supplies 400 6 Land 85,000 Buildings 6,75,000 Revenue 10000 4 Depreciation Expense 14,250 1 Accumulated Depreciation          201750 1 Income Tax Expense 3250 2 Capitalized Development Costs         8,000 Goodwill 76,000 Other Identifiable Intangible Assets      48,000 Cost of Goods Sold 40,416 3 Notes Payable                                                 1,20,000 Accounts Payable                                             6,290 Unearned Revenues                                          12,000 Income Taxes Payable                                        11,690 2 Property Taxes Payable                                      6,600 Utilities Payable 1,250 Salaries Payable 1,500 Provisions Related to Pensions                    84,000 Bonds Payable                                           3,00,000 Common Stock                                                      1,10,000 Preferred Stock                                                      1,00,000 Paid-in-capital - Common Stock                             27,500 Paid-in-capital - Preferred Stock                             10,000 Interest Payable 1,800 9 Interest Expense 1800 9 Retained Earnings                                                  2,08,598 Accumulated Other Comprehensive Income             5,000 Treasury Stock                                             12,750 12,62,994 12,62,994

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