ANSWER ASAP
Record the needed adjusting journal entries.
The trial balance of Veggies-R-Us., at December 31, 20XX, and the data needed for the year-end adjustments follow. (Round all results to the nearest whole dollar amount.)
Interest on these bonds is to be paid semi-annually on January 1 and July 1 of each year. An entry needs to be made for December 31’s accrued interest due and for the appropriate amount relating to the amortization of the premium (use straight-line amortization for this premium). A check will be written and issued for the appropriate amount of interest due on January 1.
Veggies-R-Us.
Trial Balance
December 31, 20XX
Account Title |
Debit |
Credit |
|
Cash |
$26,750 |
||
Accounts receivable |
47,630 |
||
Allowance for doubtful accounts |
250 |
||
Prepaid rent |
1,680 |
||
Supplies |
8,700 |
||
Investments |
113,520 |
||
Furniture |
15,350 |
||
Accumulated depreciation-furniture |
12,800 |
||
Equipment |
44,600 |
||
Accumulated depreciation-equipment |
1,830 |
||
Building |
89,900 |
||
Accumulated depreciation-building |
28,600 |
||
Accounts payable |
6,240 |
||
Salary payable |
|||
Unearned revenue, customer deposits |
25,500 |
||
Bonds payable |
150,000 |
||
Premium of bonds payable |
6,000 |
||
Common stock |
20,000 |
||
Retained earnings |
54,920 |
||
Dividends |
5,250 |
||
Revenue |
132,400 |
||
Salary expense |
51,600 |
||
Rent expense |
5,000 |
||
Utilities expense |
10,410 |
||
Depreciation expense-furniture |
0 |
||
Depreciation expense-equipment |
0 |
||
Depreciation expense-building |
0 |
||
Advertising expense |
5,650 |
||
Supplies expense |
12,000 |
||
Bad debts expense |
0 |
||
Interest expense |
0 |
||
Total |
$438,290 |
$438,290 |
|
Date | Account Titles | Debit | Credit |
Dec 31, 20XX | $ | $ | |
1. | Supplies Expense | 3,450 | |
Supplies | 3,450 | ||
2. | Rent Expense | 780 | |
Prepaid Rent | 780 | ||
3. | Depreciation Expense: Furniture | 210 | |
Accumulated Depreciation: Furniture | 210 | ||
4. | Depreciation Expense: Building | 1,980 | |
Accumulated Depreciation : Building | 1,980 | ||
5. | Depreciation Expense: Equipment | 1,125 | |
Accumulated Depreciation : Equipment | 1,125 | ||
6. | Salaries Expense | 1,300 | |
Salaries Payable | 1,300 | ||
7. | Unearned Revenue | 22,375 | |
Revenue | 22,375 | ||
8. | Bad Debt Expense | 607 | |
Allowance for Doubtful Accounts | 607 | ||
9. | Interest Expense | 3,450 | |
Premium on Bonds Payable | 300 | ||
Interest Payable ( 150,000 x 5 % x 6/12 ) | 3,750 | ||
10. | Unrealized Loss on Investments | 1,520 | |
Investments | 1,520 |
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