Problem - Presented below is the December 31 trial balance of New York Boutique.
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NEW YORK BOUTIQUE TRIAL BALANCE DECEMBER 31
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Debit
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Credit
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Cash
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$ 18,500
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Accounts Receivable
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32,000
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Allowance for Doubtful Accounts
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$ 700
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Inventory, December 31
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80,000
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Prepaid Insurance
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5,100
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Furniture and Equipment
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84,000
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Accumulated Depreciation-Furniture and Equipment
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35,000
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Notes Payable
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28,000
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Common Stock
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80,600
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Retained Earnings
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10,000
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Sales
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600,000
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Cost of Goods Sold
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408,000
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Sales Salaries Expense
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50,000
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Advertising Expense
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6,700
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Administrative Salaries Expense
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65,000
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Office Expense
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5,000
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$754,300
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$754,300
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Prepare adjusting journal entries for the following and post to the T-accounts.
Bad debt expense is estimated to be $1,400.
Furniture and equipment is depreciated based on a 7-year life (no salvage value).
Insurance expired during the year $2,550.
Interest accrued on notes payable $3,360.
Sales salaries earned but not paid $2,400.
Advertising paid in advance $700.
Office supplies on hand $1,500, charged to Office Expense when purchased.