Problem 1: 40 Points JEN Company\'s December 31, 2014 trial balance is as follow
ID: 2444399 • Letter: P
Question
Problem 1: 40 Points JEN Company's December 31, 2014 trial balance is as follows JEN Company Trial Balance December 31, 2014 Account Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Merchandise Inventory Land $43,500 53,500 1,500 30,000! 55,000 20,000 Building 150,000 50,000 26,000 Buildin $15,000 Equipment Accumulated Depreciation, Equipment Goodwill Accounts Payable Long Term Notes Payable Common Stock, $10 par, 2,000 shares authorized & 21,000 25,000 75,000 20,000 147,000 700,000 outstanding Retained Earnings Sales Revenue 150,000 3,500 350,000 Salaries Expense Utilities Expense Cost of Goods Sold Administrative Expenses Sales Expenses 55,000 15,000 Totals JEN a smail company and record adjusting entries & dlasing entries anly a1.00 fiscal (calendar) year end. Correcting and adjusting entries have not been recordedExplanation / Answer
Ans
Date Account Head and details Debit Credit Classification Dec. 31 Note receivable 300.00 Adjusting Entry Interest Income 300.00 Dec. 31 Interest Expense 1,875.00 Adjusting Entry Long term Note payable 1,875.00 Dec. 31 Depreciation Expense -Building 4,500.00 Adjusting Entry Depreciation Expense -Equipment 7,500.00 Accumulated Depreciation, Building 4,500.00 Accumulated Depreciation, Equipment 7,500.00 Dec. 31 Cash 1,500.00 Correction Entry Allowance for Doubtfull Debts 1,500.00 Dec. 31 Cost of Goods Sold 3,500.00 Adjusting Entry Merchandise inventory 3,500.00 Dec. 31 Salaries Expenses 5,500.00 Adjusting Entry Accrued Expenses 5,500.00 Dec. 31 Bad Debt Expense 2,675.00 Adjusting Entry Allowance for Doubtful Accounts 2,675.00 Adjusted Trial Balance Debit Credit Debit Credit Net Cash 43,500.00 1,500.00 45,000.00 Accounts Receivable 53,500.00 53,500.00 Allowance for Doubtfull Debts 1,500.00 4,175.00 -2,675.00 Notes Receivable 30,000.00 300.00 30,300.00 Merchandising Inventory 55,000.00 3,500.00 51,500.00 Land 20,000.00 20,000.00 Building 1,50,000.00 1,50,000.00 Accumulated Depreciation, Building 15,000.00 4,500.00 -19,500.00 Equipment 50,000.00 50,000.00 Accumulated Depreciation, Equipment 21,000.00 7,500.00 -28,500.00 Goodwill 26,000.00 26,000.00 Accounts Payable 25,000.00 -25,000.00 Accrued Expenses 5,500.00 -5,500.00 Long Term Note Payable 75,000.00 1,875.00 -76,875.00 Commobn Stock, 10 par , 2000 Shares 20,000.00 -20,000.00 Retained Earnings 1,47,000.00 -1,47,000.00 Sales Revenue 7,00,000.00 -7,00,000.00 Salaries Expense 1,50,000.00 5,500.00 1,55,500.00 Utilities Expense 3,500.00 3,500.00 Cost of Goods Sold 3,50,000.00 3,500.00 3,53,500.00 Administrative expense 55,000.00 55,000.00 sales Expense 15,000.00 15,000.00 Interest Income 300.00 -300.00 Interest Expense 1,875.00 1,875.00 Depreciation Expense -Building 4,500.00 4,500.00 Depreciation Expense -Equipment 7,500.00 7,500.00 Bad Debt Expense 2,675.00 2,675.00 10,03,000.00 10,03,000.00 27,350.00 27,350.00