Question

Problem 21 Check my work mode : This shows what is correct or incorrect for the work you have a itseiron naving no long-term nabilities. The company has provided the following trial balance dated December 31, 2018. $ 47,000 34,000 130,000 5,500 251,000 1,800 7,150 1,799,000 795,000 74,800 MUSIC-IS-US, INC. TRIAL BALANCE DECEMBER 31, 2018 Cash Marketable securities Accounts receivable Allowance for doubtful accounts Merchandise inventory Office supplies Prepaid insurance Building and fixtures Accumulated depreciation Land Accounts payable Unearned customer deposits Income taxes payable Capital stock Retained earnings Unrealized holding gain on investments Sales Cost of goods sold Bank service charges Uncollectible accounts expense Salary and wages expense Office supplies -expense Insurance expense Utilities expense Depreciation expense Income tax expense 64,000 7,600 73,000 900.000 233,200 5,400 ,741.690 954,000 240 8,800 387,000 400 6,400 2.800 48.000 73,000 3,825, 390 $3,825,390 < Prev 2 3 4 ... 7 of 7 # MacBook Air

Answer 1

Adjusting entries are the entries made for adjusting the revenue and expenses for the period in which they are incurred. It is done at the end of the accounting period after preparing the unadjusted trail balance.

Sr.No.	Date	Account Title	Debit	Credit
5	Dec 31	Office Supplies Expense	$1,350		[$1800-$870]
		Office Supplies		$1,350
		(To record office supplies expense)
6	Dec 31	Insurance Expense	$1,192		[$7150 / 12 x 2]
		Prepaid Insurance		$1,192
		(To record insurance expense)
7	Dec 31	Depreciation Expense	$5,000
		Acumulated Depreciation		$5,000
		(To record depreciation expense)
8	Dec 31	Unearned Customer Deposit	$3,100		[$7600-$4500]
		Sales		$3,100
		(To record sales)
9	Dec 31	Income Tax Expense	$80,000
		Income Tax Payable		$80,000
		(To record income tax expense)