Question

1. Complete the Adjustments section of the work sheet using the following information:

1. On October 30, an inventory of the supplies showed that items costing $1,730 were used this

   month. Record an adjustment for the supplies used in October.

2. On October 1, 20xx the company purchased a twelve-month insurance policy for $8,400.

   Record an adjustment for the expired insurance during the month of October.

3. On October 3, the company purchased a six-month advertising contract for $4,800. Record an

   adjustment for the expired advertising in October. Assume a full month of advertising expired in

   October .

4. The company owns store equipment and purchased it for $83,000. The store equipment has an

   estimated useful life of 8 years and a salvage value of $8,000. Record depreciation on the store

   equipment for one month using the 200% declining balance method.

e - f. Based on a physical count, ending merchandise inventory was determined to be $21,500. g. Record the estimate for uncollectible accounts using the percent of credit sales method at 2%

of credit (on account) sales

2. Complete the remaining columns of the work sheet and determine the amount for net income (or net loss).

3. Copy the amounts on the worksheet in the Income Statement and Balance Sheet columns and create a horizontal ands vertical analysis

Answer 1

1. Adjusting Entries -

Please provide the remaining information for the rest of the answer.

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