Jewellery’s payment of the amount due Paid Luu Company the amount due from the August 1 purchase. 5-4A Adjusting entries and multi-step income statement-perpetual LOS Xcel n from the unadjusted trial balance of Electric Bike on December 31, 2020, the end of the SURE: 2. Profit= $4,855 period, is as follows: Debit Credit $ 8,200 Cash. 22,765 34,700 Accounts receivable. Merchandise inventory 2,465 Store supplies 785 Office supplies 3,355 Prepaid insurance. 75,590 Equipment Accumulated depreciation, equipment. Accounts payable. Salaries payable Braeden Li, capital Braeden Li, withdrawals Interest income Sales Sales returns and allowances. Cost of goods sold. Salaries expense Rent expense Supplies expense. Depreciation expense, equipment. Insurance expense Totals. 62,500 5,170 381,260 96,400 29,200 -0- -0- -0- $722,390 $ 13.755 8,100 -0- 170,715 320 529,500 pins $722,390 CHAPTERS Auring Required 1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a resale value at the end of its life of $14,590. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $260 was unused at December 31, 2020. qua examination of the office supplies showed that $645 had been used. c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $2.030;, a similar d. Accrued salaries payable, $1,850. e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33,890. 2. Using adjusted trial balance numbers, prepare a multiple-step income statement showing the expenses in detail. Analysis Component: Explain why Interest income is shown under Other revenues and expenses on the multiple-step income statement. Me SOLVEIT Problem 5-5A Income statement calculations and formats-perpetual LO5 CHECK FIGURE: 1. Income from operations = $55,000 The following amounts appeared on Davison Company’s adjusted trial balance as of October 31, 2020, the end of its fiscal year: Debit Credit
