Question

HELP!!!!!! ADJUSTING ENTRIES......

Bledsoe Flowers Inc.
Trial Balance (Unadjusted)
31-Dec-18
				Dr.	Cr.
Cash				$38,600
Accounts receivable, 12/31/17				116,200
Inventory, 12/31/17				62,000
Investments, at cost				179,700
Furniture and Fixtures				198,200
Accumulated depreciation, 12/31/17					$82,400
Accounts payable, 12/31/17					17,000
Capital stock, $10 par value					50,000
Retained earnings, 12/31/2017					117,000
Sales					877,700
Notes payable, due 3/31/20					200,000
Purchases				405,100
Land improvement expense				50,000
Salaries expense				174,000
Payroll Taxes				12,400
Income tax expense				45,000
Insurance expense				8,700
Rent expense				7,400
Utilities expense				34,200
Travel and entertainment expense				12,600
TOTALS				$1,344,100	$1,344,100

1. Bledsoe is being sued for $100,000. The coverage under the comprehensive insurance policy is limited to $50,000. Bledsoe's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $65,000.                             
2. All employees are paid weekly on Friday. The average payroll is $3,000 (6 day work week) per week. Employees were last paid on Friday, December 28th, 2018 for the week ended December 22nd.

Answer 1

Adjusting Entries
Damage Expenses (on law-suit settlement)	15000
Liability on law-suit settlement		15000
(65000-50000)
Salaries expense	3857
Salary payable		3857
3000/7*9
(Salary for Dec 23- 31---9 days)

Bledsoe Flowers Inc.
Trial Balance
31-Dec-18	Unadjusted T/B		Adj.Entries		Adjusted T/B
	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	38600				38600
Accounts receivable, 12/31/17	116,200				116,200
Inventory, 12/31/17	62,000				62,000
Investments, at cost	179,700				179,700
Furniture and Fixtures	198,200				198,200
Accumulated depreciation, 12/31/17		82400				82400
Accounts payable, 12/31/17		17,000				17,000
Liability for law-suit				15000		15000
Salary payable				3857		3857
Capital stock, $10 par value		50,000				50,000
Retained earnings, 12/31/2017		117,000				117,000
Sales		877,700				877,700
Notes payable, due 3/31/20		200,000				200,000
Purchases	405,100				405,100
Land improvement expense	50,000				50,000
Salaries expense	174,000		3857		177,857
Payroll Taxes	12,400				12,400
Income tax expense	45,000				45,000
Insurance expense	8,700				8,700
Rent expense	7,400				7,400
Utilities expense	34,200				34,200
Travel and entertainment expense	12,600				12,600
Damage expenses(Law-suit)			15000		15,000
TOTALS	1344100	1344100	18857	18857	1362957	1362957