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Q3. Following is the year-end un-adjusted trial balance for Yakima\'s Sporting G

ID: 2537948 • Letter: Q

Question

Q3. Following is the year-end un-adjusted trial balance for Yakima's Sporting Goods for the current year, 2017(Amounts in Saudi Riyal) 3 marks

Yakima’s Sporting Goods

Un adjusted Trial Balance

December 31,2017

Dr

Cr

Cash

67,400

Accounts receivable

46,000

Merchandise inventory

50,000

Office supplies

800

Equipment

100,000

Accounts payable

16,000

Salaries payable

850

Common stock

50,000

Retained earnings

175,530

Dividends

5,000

Sales

500,000

Sales returns & allowances

4,500

Sales discounts

4,250

Cost of goods sold

382,450

Sales salaries expense

44,000

Advertising expense

8,150

Office salaries expense

24,325

Office supplies expense

450

Interest expense

5,055

Totals

742,380

742,380

At the end of the year, 2017 you are given the following information regarding adjusting accounts:

-Equipment of 100,000 is depreciated using straight line method, salvage value is 20,000 and useful life is 4 years

-The end of period counting revealed that supplies used in the current year are 500.

-There is unrecorded and unpaid rent expense of 5,000.

- There is unrecorded and uncollected earned revenue of 1,000.

Required: journalize the adjusting accounts.

Yakima’s Sporting Goods

Un adjusted Trial Balance

December 31,2017

Dr

Cr

Cash

67,400

Accounts receivable

46,000

Merchandise inventory

50,000

Office supplies

800

Equipment

100,000

Accounts payable

16,000

Salaries payable

850

Common stock

50,000

Retained earnings

175,530

Dividends

5,000

Sales

500,000

Sales returns & allowances

4,500

Sales discounts

4,250

Cost of goods sold

382,450

Sales salaries expense

44,000

Advertising expense

8,150

Office salaries expense

24,325

Office supplies expense

450

Interest expense

5,055

Totals

742,380

742,380

Explanation / Answer

: journalize the adjusting accounts.

Date accounts & Explanation debit Credit Depreciation expense (100000-20000)/4 20000 Accumlated depreciation 20000 (To record depreciation) Supplies expense 500 Supplies 500 (To record supplies used) Rent expense 5000 Rent expense payable 5000 (To record rent expense) Account receivable 1000 Service revenue 1000 (To record revenue)