I really just need someone to explain 10-14, I have the answers but I\'m confuse

Question

I really just need someone to explain 10-14, I have the answers but I'm confused on how to do them. Thank you! The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below: READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending impact for 2012 NO QUESTIONS WILL BE ANSWERED. PRINT CLEARLY and USE COMPLETE Account Titles. Dr Cr Account Cash Accounts Receivable Allowance for Doubtful 496,000 199,000 50,000 Accounts Prepaid Rent Prepaid Insurance Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable Wages Payable Common Stock 525,000 150,000 875,000 215,000 85,000 750,000 80,000 1,200,00 595,000 Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals 2,760,00 2,760,00

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 10 Rent Expenses                                            Dr.          300,000    To Prepaid Rent          300,000 (Record the rent expenses of the year) Lease Rent Paid in Advance on Oct 1, 2011 = $600,000 Rent Expenses - Jan 1 - Dec 31, 2012 = $600,000 X 12/24 Rent Expenses - Jan 1 - Dec 31, 2012 = $300,000 11 Prepaid Insurance                                      Dr.          480,000    To Cash          480,000 (record the insurance policy paid for one year) Insurance Expenses                                   Dr.          430,000    To Prepaid Insurance          430,000 (Record the I nsurance expenses of the year) Insurance expenses Jan 1 - May 31, 2012 - $360,000 X 5/12          150,000 Jun 1 - Dec 31, 2012 - $480,000 X 7/12          280,000 Total Insurance Expenses          430,000 12 Depreciation Expenses                             Dr.            21,000     To Accumulated Dep . - Fur. & Fix.            21,000 (record the depreciation expense for the year) Dep. Expenses = ($215,000 - $5,000) / 10 Years = $21,000 13 Allowance for Doubtful Accounts         Dr.              9,400    To Bad Debt Expense              9,400 (Record the bad debt expense) Bad debt Expense = $40,600 - $50,000 = $9,400 (Cr. Balance) 14 Retained Earnings                                       Dr.      4,000,000     To Dividends      4,000,000 (Record the dividends declared) Dividends                                                       Dr.      4,000,000    To Cash      4,000,000 (record the Dividend Paid)

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