this question has 2 parts. for part 1 we need to put jounal entries. Golden Wedd

Question

this question has 2 parts. for part 1 we need to put jounal entries. Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year- end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2017, year-end. Unaqusted Accousts recevable 81.400 Accum deprec, buiding Accum deprec, equpment Advance sales Alowance for doubtful accounts 22.000 338.000 222.000 427000 31.000 3800 0250 27,000 1.000 222873 14177 56.000 1167.000 1351,000 .200 Estimated warranty liablity ncome tax expense Merchandise inventony Sarah Golden capital Note payable Sales Sales retuwns and alw Other information: 1. Assume all accounts have a normal balance. 2.75% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2018; the remaining 25% is from sales earned during 2017. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%, 5-year note payable was issued on October 1, 2017; interest is payable annually each September 30. 5. A partial amortization schedule for the mortgage follows:

Explanation / Answer

Accounts Title Dr Cr 1 Advance Sales $55,500 Sales (222000*25%) $55,500 2 Warranty Expenses 38149.00 Estimated warranty liability 38149.00 ((1351000+55500-8200)*3%)-3800 3 Interest expenses $1,560.00 Interest payable (156000*4%*3/12) $1,560 4 Interest expenses $9,840 Interest payable $9,840 5 Bad Debt expenses/Uncollectible Accounts expenses 114 Allowance for Doubtful Accounts $114 (81400*1%)-700 6 Cost of good sold (71000-62200) $8,800 Mercandise Inventory $8,800 As there is no COGS hence other operating expenses can be debited 7 Income tax expenses $2,750 Income tax payable $2,750 Balance Sheet Assets Current assets Cash $87,700 Accounts receivable 81400 Less:Allowance for Doubtful debts Accounts 814 80586 Mercandise Inventory 62200 Total current Assets $230,486 Property Plant & equipment Land 127000 Building 427000 Less: Acc dep-Building 122000 305000 Equipment 631000 Less: Acc dep-equipment 338000 293000 Net Property Plant & equipment 725000 Total assets $955,486 Liabilities & Equity Current liabilities Income Tax payable 2750 Estimated Warranty liability (38149+3800) 41949 Interest payable (1560+9840) 11400 Mortgage payable 22249 Advance sales 166500 Total Current liabilities 244848 Non current liabilities Notes payable 156000 Mortgage payable 222873 378873 Total liabilities 623721 Equity Sarah Golden Capital $331,765 Total Liabilities & Equity $955,486

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