Using T Accounts, Record the Required Adjusting Entries for the Year

question 90

Essay

Using T accounts, record the required adjusting entries for the year ended December 31 for Manning Equipment. Manning Equipment uses the periodic inventory system.
a-b.
A physical count of inventory revealed a balance of $63,222. The Merchandise Inventory account shows a balance of $72,589.
c.Equipment purchased on July 7 of the current year for $14,500 is expected to have a useful life of eight years, with a $3,750 trade-in value.All other equipment has been fully depreciated.The straight-line method is used.(Round to the nearest dollar.)
d.As of December 31, three days' salaries will be unpaid at $587 per day per employee.There are five employees.
e.The balance of Supplies account prior to adjustments is $3,125.The amount of supplies used is $1,965.
f.A prepaid order was received on September 20 for $6,298.At year end, $2,477 had been delivered to the customer.

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