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—ending $10
Store supplies on hand 3
Depreciation on store equipment 2
Accrued salaries 1
use the following information to complete the partial worksheet for bills company
Hi.
I'm having trouble as well with Bill's Company worksheet. Sorry.
nwa
To complete the partial worksheet for Bill's Company, we need to record the appropriate adjusting entries using the provided data and extend the balances over to the adjusted trial balance columns.
First, let's understand what each of the adjusting entries represent:
1. Merchandise inventory—ending: This adjustment reflects the value of merchandise inventory at the end of the accounting period. In this case, the ending inventory is $10.
2. Store supplies on hand: This adjustment represents the value of store supplies remaining at the end of the accounting period. The amount given is $3.
3. Depreciation on store equipment: This adjustment accounts for the depreciation expense on the store equipment used during the accounting period. The amount given is $2.
4. Accrued salaries: This adjustment reflects the salaries owed to employees for the work they have completed but have not been paid for yet. The amount given is $1.
Now, let's record the adjusting entries on the worksheet:
Adjusting Entries:
1. Merchandise inventory—ending:
Debit: Merchandise Inventory $10
Credit: Income Summary (or Retained Earnings) $10
2. Store supplies on hand:
Debit: Store Supplies Expense $3
Credit: Store Supplies $3
3. Depreciation on store equipment:
Debit: Depreciation Expense $2
Credit: Accumulated Depreciation $2
4. Accrued salaries:
Debit: Salaries Expense $1
Credit: Salaries Payable $1
After recording these adjusting entries, extend the balances over to the adjusted trial balance columns. Merge the balances from the adjusted trial balance columns with the balances from the unadjusted trial balance columns to complete the worksheet.
The adjusted trial balance will now include the adjusted balances for each account, taking into consideration the adjustments we made.