new york boutique financial statements 500556

Debit

Credit

Cash

18,500$

Accounts Receivable

32,000

Allowance for Doubtful Accounts

700$

Inventory, December 31

80,000

Prepaid Insurance

5,100

Equipment

84,000

Accumulated Depreciation Equipment

35,000

Notes Payable

28,000

Common Stock

80,600

Retained Earnings

10,000

Sales Revenue

600,000

Cost of Goods Sold

408,000

Salaries and Wages Expense (sales)

50,000

Advertising Expense

6,700

Salaries and Wages Expense (administrative)

65,000

Supplies Expense

5,000

$754,300

$754,300

1.

Bad debt expense is estimated to be $1,400.

2.

Equipment is depreciated based on a 7-year life (no salvage value).

3.

Insurance expired during the year $2,550.

4.

Interest accrued on notes payable $3,360.

5.

Sales salaries and wages earned but not paid $2,400.

6.

Advertising paid in advance $700.

7.

Office supplies on hand $1,500, charged to Supplies Expense when purchased.