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GRADED PROJECT Directions: Be sure to make an electronic copy of your answer bef

ID: 2599652 • Letter: G

Question




GRADED PROJECT Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the Assignment Format page for specific format requirements. Part A (40 points) Use the following information to complete the partial worksheet for Bill's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns. Merchandise inventory-ending10 Store supplies on hand Depreciation on store equipment Accrued salaries Bill's Company Partial Worksheet For the Year Ended December 31 2012 Adjusted Trial Balance Account Titles Trial Balance Adjustments Debit Credit Debit Credit Debit Credit 16 10 20 Merchandise Inv. Store Supplies Store Equipment Accum. Depr. Store Equip. Salaries Payable Income Summary Salary Expense Depreciation Expense Store Supplies Exp.

Explanation / Answer

Note:

Both given question are separate & independent hence as per rule I am answering first question that is part (A).

Account Titles

Trial Balance

Adjustments

Adjusted Trial Balance

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Merchandise inventory

$16

$10

$16

$10

Store supplies

$10

$7

$3

Store equipment

$20

$20

Acc. Dep. Store equip.

$6

$2

$8

Salaries payable

$1

$1

Income summery

$16

$10

$16

$10

Salary expense

$10

$1

$11

Depreciation expense

$2

$2

Store supplies expense

$7

$7

Working Note;

1. Beginning inventory is adjusted through debiting income summery whereas ending inventory is adjusted through crediting income summery.

2. Supplies expense is calculated as follow;

($10 – $3) = $7

3. Accumulated depreciation in adjusted trial balance will be as follow;

($6 + $2) = $8

4. Total salary expenses in adjusted trial balance will be ($10 + $1) = $11

Account Titles

Trial Balance

Adjustments

Adjusted Trial Balance

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Merchandise inventory

$16

$10

$16

$10

Store supplies

$10

$7

$3

Store equipment

$20

$20

Acc. Dep. Store equip.

$6

$2

$8

Salaries payable

$1

$1

Income summery

$16

$10

$16

$10

Salary expense

$10

$1

$11

Depreciation expense

$2

$2

Store supplies expense

$7

$7