Q3. Following is the year-end un-adjusted trial balance for Yakima\'s Sporting G
ID: 2537948 • Letter: Q
Question
Q3. Following is the year-end un-adjusted trial balance for Yakima's Sporting Goods for the current year, 2017(Amounts in Saudi Riyal) 3 marks
Yakima’s Sporting Goods
Un adjusted Trial Balance
December 31,2017
Dr
Cr
Cash
67,400
Accounts receivable
46,000
Merchandise inventory
50,000
Office supplies
800
Equipment
100,000
Accounts payable
16,000
Salaries payable
850
Common stock
50,000
Retained earnings
175,530
Dividends
5,000
Sales
500,000
Sales returns & allowances
4,500
Sales discounts
4,250
Cost of goods sold
382,450
Sales salaries expense
44,000
Advertising expense
8,150
Office salaries expense
24,325
Office supplies expense
450
Interest expense
5,055
Totals
742,380
742,380
At the end of the year, 2017 you are given the following information regarding adjusting accounts:
-Equipment of 100,000 is depreciated using straight line method, salvage value is 20,000 and useful life is 4 years
-The end of period counting revealed that supplies used in the current year are 500.
-There is unrecorded and unpaid rent expense of 5,000.
- There is unrecorded and uncollected earned revenue of 1,000.
Required: journalize the adjusting accounts.
Yakima’s Sporting Goods
Un adjusted Trial Balance
December 31,2017
Dr
Cr
Cash
67,400
Accounts receivable
46,000
Merchandise inventory
50,000
Office supplies
800
Equipment
100,000
Accounts payable
16,000
Salaries payable
850
Common stock
50,000
Retained earnings
175,530
Dividends
5,000
Sales
500,000
Sales returns & allowances
4,500
Sales discounts
4,250
Cost of goods sold
382,450
Sales salaries expense
44,000
Advertising expense
8,150
Office salaries expense
24,325
Office supplies expense
450
Interest expense
5,055
Totals
742,380
742,380
Explanation / Answer
: journalize the adjusting accounts.
Date accounts & Explanation debit Credit Depreciation expense (100000-20000)/4 20000 Accumlated depreciation 20000 (To record depreciation) Supplies expense 500 Supplies 500 (To record supplies used) Rent expense 5000 Rent expense payable 5000 (To record rent expense) Account receivable 1000 Service revenue 1000 (To record revenue)Related Questions
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