Question

The following trial balance was taken from the books Of pharaoh corporation on December 31st 2020. Cache 7800 accounts receivable 39400 notes receivable 9200 allowances for doubtful accounts 1620 Every Tory 3 3400 prepaid insurance 5050 equipment 122900 accumulated depreciation appointment 14800 accounts payable 10200 common stock 43200 retained earnings 42330 sales revenue 290000 cost of goods sold 120800 salary and wage expense 51100 rent expense 12500. At year end, the following items have not been recorded. Insurance expired doing the year $2190 estimate bad debt 2% of gross sales depreciation on equipment 10% per year on original cost interest at 6% is receivable on the note for one full year rent paid in advance at December 31st 5600 originally charged to expense accrued salaries and wages at December 31st 6440
Prepare the necessary adjusting entries

Answer 1

Date	Account title	Debit	credit
a	Insurance expense	2190
	Prepaid insurance		2190
b	Bad debt expense	5800
	allowances for doubtful accounts   (290000*2%)		5800
c	Depreciation expense	12290
	Accumulated depreciation (122900*10%)		12290
d	Interest receivable	552
	Interest revenue (9200*6%)		552
e	Rent paid in advance /Prepaid rent	5600
	Rent expense		5600
f	salary and wage expense	6440
	salaries and wage payable		6440