Question

Unadjusted trial balnce, journal entries, T accounts then making the adjusted trial balance

Financial Statement Homework #2 Name Gold, Inc. December 31, 2015 Unadjusted Trial balance 44,000 22,000 Cash Accounts Receivable Allowance for Doubtful Accounts 500 Short Term Note Receivable Interest Receivable Supplies on Hand Prepaid Insurance Inventory Vehicle Equipment 50,000 5,000 48,000 10,000 16,000 75,000 42,000 Accumulated Depreciation Accounts Payable 12,000 14,000 Unearned Revenue 2,000 Wages Payable Long-Term Notes Payable 45,000 106,000 Common Stock Retained Earnings (1/1/2015) 2,500 2,000 Dividends 503,500 Sales Sales Discounts 10,000 Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense 48,000 5,000 16,000 98,000 25,000 195,000 16,000 Supplies Expense Interest Revenue Loss on Disposal 6,500 Interest Expense Income Tax Expense 36,000 727,500 727,500 Total Page 1 of 8

Answer 1

Below answer represents complete derived of multiple T account base balance after considering fact mentioned in the question . After pass and prepared T account , prepared adjusted TB . Where ever , adjustment made in TB , I put refer " T account " to easy understand flow of information .

Ref	Record Adjust Journal Entries	Debit($)	Credit($)
1	Account Receivable	14,500
	Sales		14,500
	( To record sales )
1	Cost of goods sold	4,500
	Invetory		4,500
	( to record cost of goods sold)
2	Interest Expenses	1,250
	Interest Payable		1,250
	( to recrod Interest Exp payable )
	($50000*10%*3/12)
	( period - 3 months - Oct to Dec'15
3	Allowance for Doubtful	1,400
	Account Receivable		1,400
	( To record write off )
4	Bad Debt ( Please see below T account)	1460
	Allowance for Doubtful		1460
	( to record uncollected amount as Bad Debt)
5	Depreciation Expenses	2,000
	Accumulated Depreciation		2,000
	( to record Depreciation Exp)
5	Accumulated Depreciation ($24000+$2000 ( depreciation )	26,000
	Loss on Disposal	4,000
	Equipment		30,000
	( to record retirement of asset)

Account Receivable
Details	Amnt($)	Details	Amnt($)
Opening Balance	22,000	Allowance for Doubtful debt	1,400
Sales	14,500	Closing Balance	35,100
Total	36,500	Total	36,500
Sales
Details	Amnt($)	Details	Amnt($)
Closing Balance	5,18,000	Opening Balance	5,03,500
	-	Account Receivable	14,500
Total	5,18,000	Total	5,18,000
Cost of Goods Sold
Details	Amnt($)	Details	Amnt($)
Opening Balance	48,000
Inventory	4,500	Closing Balance	52,500
Total	52,500	Total	52,500
Inventory
Details	Amnt($)	Details	Amnt($)
Opening Balance	10,000	Cost of Goods Sold	4,500
Sales	-	Closing Balance	5,500
Total	10,000	Total	10,000
Interest Expenses
Details	Amnt($)	Details	Amnt($)
Opening Balance	6,500		-
Interest Payable	1,250	Closing Balance	7,750
Total	7,750	Total	7,750
Interest Payable
Details	Amnt($)	Details	Amnt($)
Closing Balance	1,250	Interest Expenses	1,250
Total	1,250	Total	1,250
Allowance for Doubtful Debt
Details	Amnt($)	Details	Amnt($)
Account Receivable	1,400	Opening Balance	500
Closing Balance	560	Bad Debt	1,460
Total	1,960	Total	1,960
Bad Debt Expenses
Details	Amnt($)	Details	Amnt($)
Allowance for Doubtful Debt	1,460	Closing Balance	1,460
Total	1,460	Total	1,460
Depreciation Expenses
Details	Amnt($)	Details	Amnt($)
Opening Balance	16,000		-
Accumulated Depreciation	2,000	Closing Balance	18,000
Total	18,000	Total	18,000
Accumulated Depreciation
Details	Amnt($)	Details	Amnt($)
Equipment	26,000	Opening Balance	42,000
Closing Balance	18,000	Depreciation	2,000
Total	44,000	Total	44,000
Equipment
Details	Amnt($)	Details	Amnt($)
Opening Balance	75,000	Loss on disposal	4,000
		Accumulated Depreciation	26,000
		Closing Balance	45,000
Total	75,000	Total	75,000
Loss on Sales
Details	Amnt($)	Details	Amnt($)
Equipment	4,000	Closing Balance	4,000
Total	4,000	Total	4,000

Adjusted Trial Balance
Details	Debit($)	Credit($)	Refer
Cash	44,000
Account Receivable	35,100		T account
Allowance for Doubtful debt		560	T account
Short term Note payable	50,000
Supplies on Hand	5,000
prepaid Insurance	48,000
Inventory	5,500		T account
Vehicle	16,000
Equipment	45,000		T account
Accumulated depreciation		18,000	T account
Account Payable		12,000
Unearned revenue		14,000
Wages payable		2,000
Long term Note payable		45,000
Comom Stock		1,06,000
Retained earnings		2,500
Dividens	2,000
Sales		5,18,000	T account
Sales Discount	10,000
Cost of goods sold	52,500		T account
Delivery Expenses	5,000
Depreciation Expenses	18,000		T account
Bad debt Expeses	1,460	-	T account
Rent Expenses	98,000
Insurance Expenses	25,000
Wages Expenses	1,95,000
Supplies Expenses	16,000
Loss on disposal	4,000	-	T account
Interest Expenses	7,750		T account
Interest Payable		1,250
Income Tax expenses	36,000
Total	7,19,310	7,19,310