Item4 23points eBook Print References Item 4 Problem 5-4A Adjusting entries and multi-step income statementperpetual...
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Problem 5-4A Adjusting entries and multi-step income statementperpetual LO5
Use the unadjusted trial balance of Electric Bike on December 31, 2023.
Debit
Credit
Cash
$
7,300
Accounts receivable
21,865
Merchandise inventory
33,800
Store supplies
2,015
Office supplies
955
Prepaid insurance
5,055
Equipment
65,690
Accumulated depreciation, equipment
$
12,855
Accounts payable
7,200
Salaries payable
0
Braeden Li, capital
157,825
Braeden Li, withdrawals
58,000
Interest income
230
Sales
525,000
Sales returns and allowances
4,270
Cost of goods sold
380,360
Salaries expense
95,500
Rent expense
28,300
Supplies expense
0
Depreciation expense, equipment
0
Insurance expense
0
Totals
$
703,110
$
703,110
Required:1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $13,690. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $345 was unused at December 31, 2023. c. A review of the store supplies on December 31, 2023, revealed a balance on hand of $1,760; a similar examination of the office supplies showed that $730 had been used. d. Accrued salaries payable, $1,400. e. A count of the merchandise inventory revealed a balance on hand December 31, 2023, of $33,080.
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