Question

How do I solve this

The trial balance of Kingbird Wholesale Company contained the following accounts shown at December 31, the end of the company's fiscal year. KINGBIRD WHOLESALE COMPANY Trial Balance December 31,2022 Debit Credit Cash $ 30.400 Accounts Receivable 36.200 68.500 Inventory Land 93.000 Buildings 200.900 Accumulated Depreciation-Buildings $ 61,000 Equipment 84,500 Accumulated Depreciation Equipment 41,500 55,700 Notes Payable Accounts Payable 18,500 Common Stock 160,900 Retained Earnings 68,200 Dividends 11.000 Sales Revenue 923,100 Sales Discounts 7.000 710.900 Cost of Goods Sold Salaries and Wages Expense 52.300 Utilities Expense 12.300 Maintenance and Repairs Expense 9.900 Advertising Expense 6.200 Insurance Expense 5.800 $1,328,900 $1,328,900 Adjustment data: 1. Depreciation is $9.000 on buildings and $8,000 on equipment. (Both are operating expenses.) 2. Interest of $5.500 is due and unpaid on notes payable at December 31. 3. Income tax due and unpaid at December 31 is $25.000. Other data: $16,000 of the notes payable are payable next year.

Answer 1

Solution:

a) Adjusting Entries

No.	Account Titles and Explanation	Debit	Credit
1	Depreciation Expense	$        17,000
	Accumulated Depreciation-Equipment		$          8,000
	Accumulated Depreciation-Building		$          9,000
	(Being depreciation expense)
2	Interest Expense	$          5,500
	Interest Payable		$          5,500
	[ Being interest expense payable]
3	Income tax Expense	$        25,000
	Income Tax Payable		$        25,000
	[ Being income tax expense payable]

b) T-Accounts

Depreciation Expense
Dec. 31	$        17,000
End Balance	$        17,000
Accumulated Depreciation-Equipment
		Beg Balance	$             41,500
		Dec. 31	$                8,000
		End Balance	$             49,500
Accumulated Depreciation-Building
		Beg Balance	$             61,000
		Dec. 31	$                9,000
		End Balance	$             70,000
Interest Expense
Dec. 31	$          5,500
End Balance	$          5,500
Interest Payable
		Dec. 31	$                5,500
		End Balance	$                5,500
Income tax Expense
Dec. 31	$        25,000
End Balance	$        25,000
Income Tax Payable
		Dec. 31	$             25,000
		End Balance	$             25,000