Hi dears, could you please help me to understand these concepts, these are some adjustments that i have never faced and i dont know how should i change my new blalnce sheet and what is going in debit side and what is going in credit side? I really appreciate it,
thanks,
Accounting adjustment?
Account balances on February 28(the end of its fiscal year) cash ................................. 88,860 A/R ................................. Merchandise inventory ......903,130 store equipment ................70,970 supplies inventory .............17,480 prepaid insurance .............12,430 selling expense..................10,88... sales salaries.....................4... miscellaneous general expense ......18,930 sales discounts..................3,3... interest expense................ 7,100 social security tax expense.......3,400 total............................
accumulated depreciation on store equipment 11,420 notes payable..... 88,500 A/P ......................88,970 common stock....100,000 Retained earnings ...33,500 sales ..............988,700
Data for adjustment:
1)cost of merchandise sold 604,783 2)store equipment had a useful life of seven years(all equipment was less than 7years old) 3)supplies inventory February 28, 3877.purchases of suppliers during the year were debited to the supplies Inventory account.) 4)The note payable was at an interest rate of 9 percent, payable monthly. It had been outstanding thought out the year. 5)the statement sent by the bank adjusted for checks outstanding shows a balance of 88110. The difference represented bank service changes. Thanks,