Question

Exercise 2-20 (Algo) Worksheet (Appendix 2A) [The following information applies to the questions displayed below.) The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's year-end reporting date. Credits Debits 41,870 32,750 5,400 51,250 118,000 Account Title Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation Accounts payable Salaries payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Utilities expense Advertising expense Totals 35,400 37,000 0 100,000 35,500 503,000 301,800 100,600 32,400 @ 20,120 6,710 710,900 710, 900 The following year-end adjusting entries are required: a. Depreciation expense for the year on the equipment is $11,800. b. Salaries at year-end should be accrued in the amount of $6.440.

Answer 1

Answer

• Requirement asked

Worksheet
December 31, 2021
Account Title	Unadjusted Trial Balance		Adjusting Entries		Adjusted Trial Balance		Income Statement		Balance Sheet
	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	$41,870				$41,870				$41,870
Accounts receivable	$32,750				$32,750				$32,750
Prepaid rent	$5,400				$5,400				$5,400
Inventory	$51,250				$51,250				$51,250
Equipment	$118,000				$118,000				$118,000
Accumulated depreciation		$35,400		$11,800		$47,200				$47,200
Accounts payable		$37,000				$37,000				$37,000
Salaries payable		$0		$6,440		$6,440				$6,440
Common stock		$100,000				$100,000				$100,000
Retained earnings		$35,500				$35,500				$35,500
Sales revenue		$503,000				$503,000		$503,000
Cost of goods sold	$301,800				$301,800		$301,800
Salaries expense	$100,600		$6,440		$107,040		$107,040
Rent expense	$32,400				$32,400		$32,400
Depreciation expense	$0		$11,800		$11,800		$11,800
Utilities expense	$20,120				$20,120		$20,120
Advertising expense	$6,710				$6,710		$6,710
					$0		$479,870	$503,000	$249,270	$226,140
Net income					$0		$23,130			$23,130
Totals	$710,900	$710,900	$18,240	$18,240	$729,140	$729,140	$503,000	$503,000	$249,270	$249,270