Question

this is my assumption and trial balance. I added the adjustments but i made a mistake in creating my adjustments can you correct my adjustments? I realized I madd a mistake because my net income doesn’t equal from my income statement to my balance sheet. can you also provide me with the correct income statment by creating an entire worksheet

Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. Prepaid insurance represents a 12-month insurance policy purchased on May 1. c. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. d. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019. e. Supplies on hand total $4,674. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. g. h. On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a 5.7% annual interest rate. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019. j. Utility costs incurred but unrecorded for the month of December were estimated to be $12,314.

Answer 1

	Unadjusted				Adjusted
	Trial Balance		Adjustments		Trial Balance		Income Statement		Balance Sheet
Cash	270,788				270,788				270,788
Accounts receivable	1,070,384				1,070,384				1,070,384
Allowance for doubtful accounts		18,513.6		74,567.14		93,080.74				93,081
Interest receivable			8,530.525		8,531				8,531
Note receivable	359,180				359,180				359,180
Merchandise inventory	782,572				782,572				782,572
Prepaid insurance	28,728			19,152	9,576				9,576
Prepaid rent	47,880			6,390	41,490				41,490
Supplies	121,296			116,622	4,674				4,674
Equipment	1,118,264				1,118,264				1,118,264
Accumulated depreciation-Equipment		118,104		110,626.4		228,730.4				228,730
Accounts payable		111,826.4				111,826.4				111,826
Salaries & Wages payable				71,490		71,490				71,490
Unearned revenue		32,000	12,000			20,000				20,000
Interest payable				15,920.1		15,920.1				15,920
Utilities payable				12,314		12,314.0				12,314
Note payable (final payment due 2023)		758,100				758,100				758,100
Common stock		585,200				585,200				585,200
Retained earnings		904,400				904,400				904,400
Dividends	234,080				234,080				234,080
Sales		11,179,980				11,179,980		11,179,980
Consulting Revenue				12,000		12,000		12,000
Sales returns and allowances	63,840				63,840		63,840
Sales discounts	137,256				137,256		137,256
Cost of goods sold	7,612,388				7,612,388		7,612,388
Salaries & wages expense	1,733,256		71,490		1,804,746		1,804,746
Depreciation expense-equipment			110,626.4		110,626		110,626
Bad debt expense			74,567.14		74,567		74,567
Insurance expense			19,152		19,152		19,152
Rent expense			6,390		6,390		6,390
Supplies expense			116,622		116,622		116,622
Utilities expense	128,212		12,314		140,526		140,526
Interest revenue				8,530.525		8,530.525		8,531
Interest expense			15,920.1		15,920		15,920
	13,708,124	13,708,124	447,612.165	447,612.165	14,001,572.165	14,001,572.165	10,102,033.640	11,200,510.525	3,899,538.525	2,801,061.640
Net income							1,098,476.885			1,098,476.885
							11,200,510.525	11,200,510.525	3,899,538.525	3,899,538.525

Calculations:

a	Interest expense for six months (July1 to Dec31) = 758,100 x 4.2% x (6/12) = 15,920.1
b	Insurance expense for 8 months (May1 to Dec31) = 28,728 x (8/12) = 19,152
c	Rent expense for 2 months (Nov1 to Dec31) = 12,780 x (2/4) = 6,390
d	Consulting revenue from unearned for 3 months (Oct1 to Dec31) = 32,000 x (3/8) = 12,000
e	Supplies expense = Supplies - Supplies on had = 121,296-4,674 = 116,622
f	Depreciation expense =[1,118,264-12,000]/10 years = 110,626.4
g	Interest revenue for 5 months (Aug1 to Dec31) = 359,180 x 5.7% x (5/12) = 8,530.525
h	Bad debt expense = 74,567.14
i	Wages expense = 71,490
j	Utilities expense = 12,314

Please note that for bad debt expense i relied upon your calculation because no additional information available to calculated bad debt expense.