(A)/(C) Name
D R C R
Cash 290,135
Accounts receivable 1,000,000
Allowance for bad debt 45,000
Merchandise Inventory 1,150,000
Store Supplies 62,000
Prepaid Insurance 225,000
Prepaid rent 318,500
Furniture and fixtures 600,000
Accumulated depreciation-Furniture and Fixtures 59,000
Motor Truck 1,200,000
Accumulated depreciation Motor Truck
Accounts payable 82,100
Salary payable
Interest payable 35,800
Unearned Sales revenue 359,500
Long-term loan 950,000
Capital 2,900,000
Withdrawals 125,000
Sales revenue 3,431,900
Sales discount 100,500
Sales returns and allowances 105,500
Cost of goods sold 1,000,000
Salaries expense 830,00
Insurance Expense 225,000
Utilities Expense 325,665
Rent Expense 364,000
Depreciation Expense - Furniture & Fixtures
Depreciation Expense - Motor Truck
Store Supplies Expense
Gain on Disposal of Old Motor Truck 58,000
Bad-Debt Expense
Interest Expense
7,921,300 7,921,300
Trial Balance
(i) Store Supplies on hand at June 30, 2022 amounted to $55,000.00
(ii) Insurance of $225,000 was paid on April 1, 2022, for 9-months to December 2022
(iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022.
(iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000.
(v) The motor truck was acquired on February 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $15,000
(vi) Salaries earned by employees not yet paid amounted to $101,400 at June 30, 2022.
(vii) Accrued interest expense as of June 30, 2022, $44,400.
(viii) On June 30, 2022, $309,000 of the previously unearned sales revenue had been earned.
(ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $100,000
(x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,134,900 worth of inventory on hand at June 30,2022
Other data:
(xi) The business is expected to make principal payments totalling $275,500 towards the loan during the fiscal year to June 30 ,2023