Answer Happy

Book ire prences ↓ is Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 20X1, the firm's general ledger contained the accounts and balances that follow. ACCOUNTS AND BALANCES Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Insurance Office Equipment Accumulated Depreciation-Office Equipment Warehouse Equipment Accumulated Depreciation Warehouse Equipment Notes Payable-Bank Accounts Payable Interest Payable. Social Security Tax Payable. Medicare Tax Payable. Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable. Phillip Tucker, Capital Phillip Tucker, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Income Summary Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Supplies Expense Insurance Expense $ 31,100 Dr. 36,200 Dr. 520 Cr. 87,000 Dr. 11,400 Dr. 6,600 Dr. 7,400 Dr. 2,750 Cr. 28,200 Dr. 11,600 Cr. 37,000 Cr. 13,200 Cr. 1,780 Cr. 398 Cr. 117,874 Cr. 61,000 Dr. 663,778 Cr. 11,000 Dr. 355,000 Dr. 10,200 Cr. 37,000 Dr. 3,200 Dr. 170,000 Dr. 14,000 Dr.

B Book Prim terences Insurance Expense Depreciation Expense-Office Equipment Depreciation Expense-Warehouse Equipment Uncollectible Accounts Expense Interest Expense ADJUSTMENTS a.-b. Merchandise inventory on December 31, 20x1, is $79,000. c. During 20x1, the firm had net credit sales of $570,000; past experience indicates that 0.25 percent of these sales should result in uncollectible accounts. d. On December 31, 20X1, an inventory of supplies showed that items costing $1,280 were on hand. e. On May 1, 20X1, the firm purchased a one-year insurance policy for $6,600. Three years ago the firm purchased office equipment for $7,400. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $525. 9. Three years ago the firm purchased warehouse equipment for $28,200. At that time, the equipment was estimated to have a useful life of four years and a salvage value of $5,000 h. On November 1, 20X1, the firm issued a four-month, 12 percent note for $37,000. 1. On December 31, 20X1, the firm owed salaries of $10,000 that will not be paid until 20x2. J. On December 31, 20x1, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $10,000 of accrued wages. k. On December 31, 20x1, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $10,000 of accrued wages. Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1. 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. Complete the worksheet Analyze: When the financial statements for Healthy Eating Foods Company are prepared what not income will be reported for the period

Account Name Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supples Prepaid Insurance Office Equipment Accumulated Depreciation Office Equipment Warehouse Equipment Accumulated Depreciation Warehouse Equipment Notes Payable-Bank Accounts Payable Interest Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phily Tucker, Capital Ohite Timber Pensi S Trial Balance Debit 31,100 36.200 87,000 11,400 Credit < Prev Healthy Eating Foods Company Worksheet Year Ended December 31, 201 Adjustments 520 8 of 8 Credit 28,200 Adjusted Trial Balance Debit Credit S Next > 31,100 34.200 Income Statement Dubit Credit 87,000 S Balance Sheet Debi 31,100 36,200 ♡ Credit

Interest Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Philip Tucker, Capital Philip Tucker, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Income Summary Rent Expense Telephone Expense Salaries Expense Payrol Taxes Expense Supplies Expense Insurance Expense Depreciation Expense-Office Equipment Depreciation Experse-Warehouse Equipment Uncolectible Accounts Expense interest Expense Totals Net Income $ 166.700 $ 520 $ 0$ 28,200 $ 67,300 $ 0 $ 87,000 $ 05 Check my work $ 67,300 $