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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Definitions:

Prescription Privileges

The legal authorization granted to certain professionals allowing them to prescribe medications.

Psychologists

Professionals specializing in the study and treatment of the mind and behavior, addressing a wide range of mental health issues and developmental processes.

Canadian Psychological Association

A professional organization that represents psychologists in Canada, dedicated to the advancement of the science, practice, and education of psychology.

CPA

An acronym that may refer to Certified Public Accountant, among other meanings depending on the context.