Question

Hello I need help with creating the adjustments, adjusted trial balance, income statement, and balance sheet.

Trial Balance December 31, 2019

	Debit	Credit
Cash	29,000
Notes Receivable	10,000
Interest Receivable
Accounts Receivable	7,600
Allowance for Doubtful Accounts		200
Inventory	18,000
Prepaid Insurance
Prepaid Advertising	21,000
Land	55,000
Buildings	148,000
Accumulated Depreciation-Buildings		9,750
Equipment	89,000
Accumulated Depreciation-Equipment		18,000
Short Term Note Payable		18,000
Accounts Payable		12,000
Salaries Payable
Interest Payable
Unearned Wedding Revenue		12,000
Unearned Funeral Revenue		2,000
Mortgage Payable		133,000
Capital Stock		20,000
Retained Earnings		87,950
Dividends Declared	15,000
Wedding Revenue		123,000
Funeral Revenue		54,000
Cash Sales of garden plants		178,000
Cost of Goods Sold	71,000
Salaries Expense	130,000
Insurance Expense	9,300
Advertising Expense
Depreciation Expense-Building
Depreciation Expense-Equipment
Bad Debt Expense
Other Expenses	53,000
Interest Revenue
Interest Expense	12,000
Total	667,900	667,900

a. The 8% Note was received from a customer on December 13th. The note matures in 60 days.
b. Each mortgage payment is due on the 20th of the month. The last payment was made in December
15th. Here is the mortgage amortization schedule. Assume each month has 30 days
Date	Cash	Interest	Principal	Balance
20-Dec-19	950	447	503	133,000
20-Jan-20	950	443	507	132,493

c. All advertising was taken to the Prepaid Advertising Account. Of that 16,800 has been used during period

d. All insurance premium payments were taken to Insurance Expense. $1,000 should remain in prepaid at the end of the period

e. $9,000 of the Unearned Wedding Revenue had been earned by the end of the year.

f. A funeral prepayment on Dec 31 of $1,200 was inadvertently taken to Funeral Revenue. Funeral is scheduled for early January.

g. Salaries of $2500 had been earned but not yet paid at December 31

h. The building has a 30 year life and a $46,000 salvage value. The equipment as a 10
year life and a $20,000 salvage value. The company uses the straight-line method.
i. The company took out a short-term 9% note on November 11. The note is due in February.

     j. The company estimates that 1/2% of wedding and floral revenue after adjustments will prove uncollectible.

Answer 1

ADJUSTED TRIAL BALANCE, INCOME STATEMENT & BALANCE SHEET:
	Unadjusted T/B		Adjustments		Adjusted T/B		Income Statement		Balance Sheet
Acc title	Debit $	Credit $	Debit $	Credit $	Debit $	Credit $	Debit $	Credit $	Debit $	Credit $
Cash	29000				29000				29000
Note Rec	10000				10000				10000
Inter Rec.			42		42				42
Accounts Rec.	7600				7600				7600
Allow for D/A		200		634		834				834
Inventory	18000				18000				18000
Prep. Insu.			1000		1000				1000
Prep. Advert.	21000			16800	4200				4200
Land	55000				55000				55000
Buildings	148000				148000				148000
Acc Dep - build		9750		3400		13150				13150
Equipment	89000				89000				89000
Acc Dep - Eq.		18000		6900		24900				24900
ST Note paya.		18000				18000				18000
Accounts Pay.		12000				12000				12000
Salaries Pay.				2500		2500				2500
Interest Pay.				383		383				383
Unearned Wedding Rev.		12000	9000			3000				3000
Unearned Funeral Rev.		2000		1200		3200				3200
Mortgage Payable		133000				133000				133000
Capital stock		20000				20000				20000
Reta. Earnings		87950	15000			72950				72950
Dividends decl.	15000			15000	0				0
Wedding Rev.		123000		9000		132000		132000
Funeral Rev.		54000	1200			52800		52800
Cash sales of garden plants		178000				178000		178000
Interest rev.				42		42		42
COGS	71000				71000		71000
Salaries exp.	130000		2500		132500		132500
Insurance exp.	9300			1000	8300		8300
Advertising exp.			16800		16800		16800
Dep. Exp - building			3400		3400		3400
Dep. Exp.- Equip			6900		6900		6900
Bad Debt exp.			634		634		634
Other exp.	53000				53000		53000
Interest Exp.	12000		383				12383
Total	667900	667900	56859	56859	654376	666759	304917	362842
Net Income								57925		57925
Balance Sheet Total									361842	361842
NOTES:
interest receivable = 10000*8%*19/365 = $42
interest payable = 443*11/31=157
Dep-building = (148000-46000)/30 = 3400
Dep - equip = (89000-20000)/10 = 6900
Interest payable on ST Note= 18000*9%*51/365 = 226
Bad Debt = [ (114000 + 52800)* 0.5%] - 200 = 834 - 200 = 634