Given an unadjusted trial balance for the company below Debit ($) 99,850 100,000

Question

Given an unadjusted trial balance for the company below

Debit ($) 99,850 100,000 Credit ($) 126,500 Sales Purchases Premises Cost Accumulated depreciation at 1 January 20X3 Plant 25,000 18,000 Cost Accumulated depreciation at 1 January 20X3 Wages and salaries 2,300 8,900 7,500 5,000 ent and local business tax Inventories at 1 January 20X3 Capital at 1 January 20X3 Drawin Carriage inwards Receivables Payables Bad debts written Rent Bank balance Bank loan 80,000 25,000 4,000 27,500 gs 16,000 off 5,000 2,000 18,950 30,000 300,750 300,750

Explanation / Answer

Journal Entries :

Adjusted trial balance :

Date Accounts Titles Debit $ Credit $ 1 Cost of Sales 92350 Inventories 92350 (5000+99850-12500=92350) 2 Wages and salaries expenses 700 Wages and salaries payable 700 3 Prepaid rent 300 Rent and local taxes 300 4 Interest expense 3000 Interest payable 3000 (30000 * 10% - 3000) 5 Bad Debts expense 550 Allowance for Doubtful Accounts 550 (27500 * 2% = 550) 6 Depreciation expenses 3800 Acc. Depreciation - premises 2000 Acc. Depreciation - plant 1800 (premises = 100000 * 2% = 2000 & plant 18000 * 10% = 1800)

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