| Income statement |
| Adjusted accounts | Sales revenue | 850,000 |
| less:Cost of goods sold | 550,000 |
| Bad debt expense | $732.50 | Gross profit | 300,000 |
| Allowance for uncollectible accounts | $732.50 | Less:expenses |
| insurance expenses | $2,000 | Salaries expense | 150,000 |
| prepaid insurance | $2,000 | Insurance expense | 2,000 |
| inventory | $10,000 | Depreciation expense | 57,500 |
| cash | $10,000 | Interest expense | 17,250 |
| Depreciation Expense | $115,000 | Net sales | 73,250 |
| Accumulated depreciation | $115,000 |
| Salaries expense | $2,000 |
| salaries payable | $2,000 |
| Interest expense | $17,250 |
| Accumulated depreciation | $17,250 |
| Smith Manufacturing, Inc. |
| Trial Balance |
| December 31, 20XX |
| Adjustments | Adj trial Balance |
| DR | CR | Debit | Credit | DR | CR |
| Cash | 362,750 | 10,000 | 10000 | 352,750 |
| Accounts receivable | 320,750 | 320,750 |
| Allowance for uncollectible accounts | 15,000 | 732.50 | 15,732.50 |
| Prepaid insurance | 10,000 | 2000 | 8,000 |
| Inventory | 30,000 | 10000 | 40,000 |
| Land | 50,000 | 50,000 |
| Building | 150,000 | 150,000 |
| Accumulated depreciation-building | 7,500 | 7,500 | 15,000 |
| Equipment | 500,000 | 500,000 |
| Accumulated depreciation-equipment | 50,000 | 50,000 | 100,000 |
| Accounts payable | 105,000 | 105,000 |
| Note payable (due in 10 months, 5%) | 125,000 | 125,000 |
| Salaries payable | 2000 | 2,000 |
| Interest payable | 17,250 | 17,250 |
| Note payable (due in 5 years, 3%) | 500,000 | 500,000 |
| Common Stock (3,000 shares outstanding) | 300,000 | 300,000 |
| Retained earnings | 171,000 | 171,000 |
| Sales revenue | 850,000 | 850,000 |
| Cost of goods sold | 550,000 | 550,000 |
| Salaries expense | 150,000 | 2,000 | 152,000 |
| Insurance expense | 2000 | 2,000 |
| Depreciation expense | 57500 | 57,500 |
| Interest expense | 17,250 | 17,250 |
| Bad debt expense | 732.50 | 732.50 |
| 89,483 | 89,483 | 2,200,983 | 2,200,983 |
adjusting_and_closing_entries_42816.xlsx
