Question

Use the following adjusting entries to complete the worksheet, prepare an income statement, statement of retained earnings, closing entries, and balance sheet.

Adjustments DR CR Adjusted Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR CR | Unadjusted Trial Balance DR 270,788 1,070,384 18,514 359,180 782,572 28,728 47,880 121,296 1,118,264 118,104 111,826 32,000 4 5 Account Title 6 7 Cash 8 Accounts Receivable 9 Allowance for Doubtful Accounts 10 Interest Receivable 11 Note Receivable 12 Merchandise Inventory 13 Prepaid Insurance 14 Prepaid Rent 15 Supplies 16 Equipment 17 Accumulated Depreciation - Equipment 18 Accounts Payable 19 Salaries & Wages Payable 20 Unearned Revenue 21 Interest Payable 22 Utilities Payable 23 Note Payable (final payment due 2023) 24 Common Stock 25 Retained Earnings 26 Dividends 27 Sales 28 Consulting Revenue 29 Sales Returns and Allowances 30 Sales Discounts 31 Cost of Goods Sold 32 Salaries & Wages Expense 33 Depreciation Expense - Equipment 34 Bad Debt Expense 35 Insurance Expense 36 Rent Expense 37 Supplies Expense 38 Utilities Expense 39 Interest Revenue 40 Interest Expense 41 758.100 585,200 904,400 234,080 11,179,980 63,840 137,256 7,612,388 1,733,256 128,212 13,708,124 13,708,124

	Broomfield Company
	Adjusting Journal Entries
	For the Year Ended December 31, 2019
	Account Titles		DR	CR
a.	Interest Expense		15,920
		Interest Payable		15,920
b.	Insurance Expense		19,152
		Prepaid Insurance		19,152
c.	Rent Expense		23,940
		Prepaid Rent		23,940
d.	Unearned Revenue		12,000
		Consulting Revenue		12,000
e.	Supplies Expense		116,622
		Supplies		116,622
f.	Accumulated Depreciation - Equipment		92,189
		Equipment		92,189
g.	Depreciation Expense - Equipment		11,374
		Accumulated Depreciation - Equipment		11,374
h.	Interest Receivable		84,019
		Accounts Receivable		84,019
i.	Salaries & Wages Expense		71,490
		Salaries & Wages Payable		71,490
j.	Utilities Expense		12,314
		Utilities Payable		12,314

Answer 1

Account Title	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
	DR	CR	DR	CR	DR	CR	DR	CR	DR	CR
Cash	270,788				270,788				270,788
Accounts Receivable	1,070,384			84,019	1,070,384	84,019			986,365
Allowance for Doubtful Debts		18,514				18,514				18,514
Interest Receivable			84,019		84,019				84,019
Note Receivable	359,180				359,180				359,180
Merchandise Inventory	782,572				782,572				782,572
Prepaid Insurance	28,728			19,152	28,728	19,152			9,576
Prepaid Rent	47,880			23,940	47,880	23,940			23,940
Supplies	121,296			116,622	121,296	116,622			4,674
Equipment	1,118,264			92,189	1,118,264	92,189			1,026,075
Accumulated Depreciation - Equipment		118,104	92,189	11,374	92,189	129,478				37,289
Accounts Payable		111,826				111,826				111,826
Salaries & Wages Payable				71,490		71,490				71,490
Unearned Revenue		32,000	12,000		12,000	32,000				20,000
Interest Payable				15,920		15,920				15,920
Utilities Payable				12,314		12,314				12,314
Note Payable (final payment due 2003)		758,100				758,100				758,100
Common Stock		585,200				585,200				585,200
Retained Earnings		904,400				904,400				1,916,536
Dividends	234,080				234,080		234,080	-
Sales		11,179,980				11,179,980		11,179,980
Consulting Revenue				12,000		12,000		12,000
Sales Returns and Allowances	63,840				63,840		63,840
Sales Discounts	137,256				137,256		137,256
Cost of Goods Sold	7,612,388				7,612,388		7,612,388
Salary & Wages Expense	1,733,256		71,490		1,804,746		1,804,746
Depreciation Expense - Equipment			11,374		11,374		11,374
Bad Debt Expense					-		-
Insurance Expense			19,152		19,152		19,152
Rent Expense			23,940		23,940		23,940
Supplies Expense			116,622		116,622		116,622
Utilities Expense	128,212		12,314		140,526		140,526
Interest Revenue							-
Interest Expense			15,920		15,920		15,920
	13,708,124	13,708,124	459,020	459,020	14,167,144	14,167,144	10,179,844	11,191,980	3,547,189	3,547,189
Net Profit							1,012,136
							11,191,980	11,191,980

Closing entries
Closing Revenue Accounts
	Debit	Credit
Sales	11,179,980
Consulting Revenue	12,000
Income Summary		11,191,980
Closing Expenditure Accounts
	Debit	Credit
Income Summary	9,945,764
Sales Returns and Allowances		63,840
Sales Discounts		137,256
Cost of Goods Sold		7,612,388
Salary & Wages Expense		1,804,746
Depreciation Expense - Equipment		11,374
Insurance Expense		19,152
Rent Expense		23,940
Supplies Expense		116,622
Utilities Expense		140,526
Interest Expense		15,920
Closing Income Summary
	Debit	Credit
Income Summary(11,191,980-9,945,764)	1,246,216
Retained Earnings		1,246,216
Closing Dividend
	Debit	Credit
Retained Earnings	234,080
Dividends		234,080
Statement of Retained Earnings
	Debit	Credit	Balance
Account Retained Earnings
Beginning Balance			904,400
(3) Close Income Summary		1,246,216	2,150,616
(4) Close Dividend	234,080		1,916,536

Income Statement
Particulars	Amount
Sales	11,179,980
Less:Sales Returns and Allowances	(63,840)
Less:Sales Discounts	(137,256)
	10,978,884
Other Income
Consulting Revenue	12,000
	10,990,884
Cost of Goods Sold	(7,612,388)
Gross Profit	3,378,496
Salary & Wages Expense	(1,804,746)
Depreciation Expense - Equipment	(11,374)
Bad Debt Expense	-
Insurance Expense	(19,152)
Rent Expense	(23,940)
Supplies Expense	(116,622)
Utilities Expense	(140,526)
Interest Revenue	-
Interest Expense	(15,920)
Net Profit	1,246,216

Note - Balance Sheet has been prepared in the Worksheet based on the data. We have not prepared it separately again due to limitations of maximum allowable characters,