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Candy Company Worksheet For the Year Ended June 30, 2020 Adjusting Entries Adjusted Trial Balance DЬ. Cr. Ref DЬ. Cr. Income87,500 21,200 8,200 Salaries and Wages Expense Maint, and Repairs Expense Advertising Expense Depreciation Expense Bad Debt EInstructions: 1 Journalize the following adjusting entries for 6/30/20 in the Journal and then transfer to the worksheet in t

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Answer #1
Journal Entries:
Account Title Debit Credit
a Bad debt Expense $          1,580
Allowance for doubtful accounts $          1,580
(being 4% of accounts receivable accounted as doubtful debts. 4% of 62,00 = 2,480 - 900 (already accounted)
b Supplies expense $        13,500
Supplies on hand $        13,500
(being supplies expense accounted= 18,200 - 4,700)
c Insurance expense $        24,450
Prepaid Insurance $        24,450
(75% of prepaid insurance expensed = 32,600*75%)
d Rent expense $        11,200
Prepaid rent $        11,200
(Being 4 months of prepaid rent expensed out = 16,800*4/6)
e Depreciation expense $        14,500
Accumulated Depreciation - Building $          8,000
Accumulated Depreciation - Equipment $          6,500
(Being depreciation expense accounted)
f Utilities expense $              950
Accounts payable $              950
(Being utility expense accounted)
g Salaries and Wages expense $          4,550
Salaries and Wages payable $          4,550
(Being salary expense for last seven days @ 650 per day accounted)
h Unearned revenue $          1,280
Sales revenue $          1,280
(20% of the revenue is earned = 6400*20%)
i Interest expense $          2,475
Interest payable $          2,475
(Being interest payable on mortgage accounted for the period 01st Jan 2020 to 30th Jun 2020 @ 9% of 55,000)
Adjusted Trial Balance
Account Title Debit Credit
Cash $              63,000
Accounts Receivable $              62,000
Allowance for doubtful accounts $                2,480
Supplies $                4,700
Prepaid insurance $                8,150
Prepaid rent $                5,600
Land $              75,000
Buildings $            160,000
Acc Depreciation - building $              68,000
Equipment $            110,000
Acc Depreciation - equipment $              59,000
Goodwill $            325,000
patents $              64,500
Accounts payable $              35,750
Unearned revenue $                5,120
interest payable $                2,475
Salaries and Wages payable $                4,550
Mortgage payable $              55,000
Common stock (1$ par) $              95,000
Paid in capital in excess of CS $              45,000
Dividends $              20,000
Retained earnings $            390,500
Sales revenue $            373,780
supplies expense $              16,300
Salaries and Wages expense $              92,050
Maint. And repairs expense $              21,200
Advertising expense $                8,200
depreciation expense $              14,500
bad debt expense $                1,580
utilities expense $              18,550
rent expense $              35,200
insurance expense $              24,450
interest expense $                6,675
total $        1,136,655 $        1,136,655
Net income $            135,075
Income statement
Sales $ 373,780
Expenses
supplies expense $    16,300
Salaries and Wages expense $    92,050
Maint. And repairs expense $    21,200
Advertising expense $      8,200
depreciation expense $    14,500
bad debt expense $      1,580
utilities expense $    18,550
rent expense $    35,200
insurance expense $    24,450
interest expense $      6,675 $ 238,705
Net income $ 135,075
Statement of retained earnings
Opening balance $ 390,500
Net income $ 135,075
less; dividend $ (20,000)
Closing balance $ 505,575
Balance sheet
Assets
Cash $    63,000
Accounts Receivable
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