Accounting adjustment

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?
<<Debit Balances>> 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............................ <<Credit balances>> 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,
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The first thing you must do is determine why your balance sheet is out of balance.

COGS            604,783 Merchandise Inventory        604,783 COGS will ultimately become a debit to Retained Earnings.

Impossible to determine adjustment amount without more information such as depreciation method used and a detailed list of the equipment and purchase dates.

Supplies Expense    13,603 Supplies Inventory        13,603 Supplies Expense will ultimately become a debit to Retained Earnings.

Interest Expense        865 A/P                865 To recognize the portion of interest yet to be paid.

Bank Fees    750 Cash            750 Bank Fees will ultimately become a debit to Retained Earnings.     

Beverly
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Sounds like you should be doing your own homework.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Lots of folks come here for us to do their homework. What takes me five minutes to do can have years of negative consequences for the student who now won't LEARN the material. Keeps me employed. ;)

Beverly
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.