Notes Receivable is a 3-months. 6% note accepted on November 1.2014. Long Term N

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Notes Receivable is a 3-months. 6% note accepted on November 1.2014. Long Term Notes Payable is a 5-year. 5% note, that was signed on July 1. 2014. Interest is payable annually. Building is depreciated at 3% per year There is no salvage value. Equipment is depreciated at 15% year. There is no salvage value. Brando discovered, on December 30degree. that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss. Salaries for the last half of December, payable in January. amount to $5,500. Brando estimates that of the Accounts Receivable 5% will not be collectable Prepare in journal form, any required correcting entries Prepare in journal form, all end-of-the period adjusting entries Prepare a December adjusted trial balance Prepare a classified balance sheet for the year ended December 31.2014 Prepare in journal form, the closing entries for the year ended December 31. 2014

Explanation / Answer

a. Correcting entries

b. Adjusting entries

c. December adjusted trial balance

Date Description Debit Credit $ $ December 30, 2014 Cash 1,500 Accounts receivable 1,500 December 31, 2014 Retained earnings 3,500 Merchandise inventory 3,500

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