PLEASE ANSWER ALL OF THESE QUESTIONS Assignment: Adjustments and the Ten-Column

Question

PLEASE ANSWER ALL OF THESE QUESTIONS

Assignment: Adjustments and the Ten-Column Worksheet

Part 1
The inventory account of Olympic Sports Wear is as follows.

1.         Merchandise inventory account balance $75,000

2.         Physical inventory $71,500

Instruction:
Prepare the adjustment journal entry.

Part 2 (6 points)
The information relating to the inventory of Olympic Sports Wear is as follows:

1.         Merchandise inventory accounts balance $75,000

2.         Physical inventory $98,200

Instruction:
Prepare the adjustment journal entry.

Part 3 (6 points)
Olympic Sports Wear furnishes the following information:

1.         On January 1, 2005, the supplies account has $7,200 balance

2.         During the year, supplies are purchased for $5,000

3.         On December 31, 2005, the supplies account has a closing balance of $2,200.

Instruction:
Prepare the adjusting journal entry.

Part 4 (6 points)
Olympic Sports Wear furnishes the following information:

1.         An insurance policy is purchased on December 1, 2005 for three months (December through February). The premium amount for the quarterly period is $1,500.

2.         The clerk debited the Prepaid Insurance account for $1500.

3.         At the end of the account year (on March 31, 2006), only one month cost $500 has expired. The value of the unexpired insurance is $1,000.

Instruction:
Prepare the adjusting journal entries for the Prepaid Insurance Account.

Part 5 (6 points)
Olympic Sports Wear estimates its Annual Federal Income tax as $10,000. It has paid the tax in four installments of $2,500 each. However, at the end of the year, the actual tax amount is $11,200.

Therefore, the company needs to pay $1,200 to the government.

Instruction:
Prepare the adjusting journal entry.

Explanation / Answer

Date Description Post Ref Debit credit 1 cost of goods sold 3500 Merchandise inventory 3500 [Being inventory accounted adjusted 75000-71500] 2 Merchandise inventory 23200 cost of goods sold 23200 [Being inventory accounted adjusted 98200-75000] 3 Supplies expense 10000 supplies 10000 [Being supplies used 7200+5000-2200] 4 Federal Income tax expense 1200 Federal income tax payable 1200 [Being tax payable]

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