Question

Problem 12.5A Recording adjustments and completing the worksheet. LO 12-1, 12-2, 12-3, 12-4 Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm's general ledger contained the accounts and balances that follow. $ 29, 300 Or. 34,400 Dr. 340 Cr. 85,200 Dr. 9,600 Or rences 8,200 Dr. 2,570 kr. 23,200 Dr. 8,900 Cr 28,000 Cr. 11,400 Cr. ACCOUNTS AND BALANCES Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Insurance Office Equipment Accun. Depreciation Office Equipment Warehouse Equipment Accum. Depreciation-Warehouse Equipment Notes Payable Bank Accounts Payable Interest Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker, Capital Phillip Tucker, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Income Summary Rent mense 1,600 Cr. 380 Cr. 95,872 Cr. 52,000 Dr. 645,778 Cr. 9,200 Dr. 346,00 Dr. 8,400 Cr. 35..20

Answer 1

Healthy Eating Foods Company
Worksheet
For the Year Ended December 31, 2019
Account	Unadjusted Trial Balance		Adjustments				Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit		Debit		Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	29300						29300				29300
Accounts receivable	34400						34400				34400
Allowance for doubtful accounts		340			c.	2760		3100				3100
Merchandise inventory	85200		a, b.	77200	a, b.	85200	77200				77200
Supplies	9600				d.	8500	1100				1100
Prepaid insurance	4440				e.	2960	1480				1480
Office Equipment	8200						8200				8200
Accum. depreciation-office equipment		2570			f.	1285		3855				3855
Warehouse equipment	23200						23200				23200
Accum. depreciation-warehouse equipment		8000			g.	4000		12000				12000
Notes payable-bank		28000						28000				28000
Accounts payable		11400						11400				11400
Interest payable					h.	560		560				560
Social security tax payable		1600			j.	868		2468				2468
Medicare tax payable		380			j.	203		583				583
Federal unemployment tax payable					k.	84		84				84
State unemployment tax payable					k.	756		756				756
Salaries payable					i.	14000		14000				14000
Phillip Tucker, Capital		95872						95872				95872
Phillip Tucker, Drawing	52000						52000				52000
Sales		645778						645778		645778
Sales returns and allowances	9200						9200		9200
Purchases	346000						346000		346000
Purchases returns and allowances		8400						8400		8400
Income summary			a, b.	85200	a, b.	77200	8000		8000
Rent expense	35200						35200		35200
Telephone expense	1400						1400		1400
Salaries expense	152000		i.	14000			166000		166000
Payroll taxes expense	12200		j, k	1911			14111		14111
Supplies expense			d.	8500			8500		8500
Insurance expense			e.	2960			2960		2960
Depreciation expense-office equip.			f.	1285			1285		1285
Depreciation expense-warehouse equip.			g.	4000			4000		4000
Uncollectible accounts expense			c.	2760			2760		2760
Interest expense			h.	560			560		560
Totals	802340	802340		198376		198376	826856	826856	599976	654178	226880	172678
Net income									54202			54202
Totals									654178	654178	226880	226880

Working:

c. Uncollectible accounts expense = 0.50% x $552000 = $2760

e. Insurance expense = $4440 x 8/12 = $2960

f. Depreciation-office equipment = ($8200 - $490) x 1/6 = $1285

g. Depreciation-warehouse equipment = ($23200 - $3200) x 1/5 = $4000

h. Interest expense = $28000 x 12% x 2/12 = $560

Analyze:

Net income: $54202