Unadjusted Adjustments

Debit Credit Debit

Cash 225000
Accounts Receivable 936000 15000
Allowance for Doubtful accounts 31900
Notes Receivable 155000
Merchandise Inventory 568900
Furniture and equipment 618000
Accumulated Depreciation 187500 11000
Goodwill 300000
Accounts Payablr 536000
Nots Payable 100000
Common Stock 1000000
Retained Earnings 552500 300000
Sales 3728200
Sales returns and allowances 47600
Purchases 2159300 50000
Purchases returns and allowances 36500 36500
Advertising expense 96100
Sales Salaries 288500
Commision Expense 152000
Miscelaneous selling expense 29900
rent expense 130000
Office Salaries 197200
Light and water 15000
Insurance expense 10800
Taxes and licenses 47800
General expenses 163400
Interest expense 41200
Interest income 9100
6181700 6172600
Doubtful Accounts Expense 15650
Cost of Goods Sold 2120500
Merchandise Inventory 621200
Gain on Sale of equipmet
Depreciation expense 64300
Prepaid Insurance 4200
Prepaid Rent 10000
Discount on Notes Payable 11000
3259350

Income before Income Tax

Income before Income Tax
Income Tax Expense
Income Tax Payable
Profit
Adjustments Profit or Loss Financial Position
Credit Debit Credit Debit Credit
15000 210000
951000
15650 47550
155000
568900
5000 613000
64300 240800
300000
50000 586000
100000
1000000
252500
3728200
47600
2209300

96100
288500
152000
29900
10000 120000
197200
15000
4200 6600
47800
163400
11000 30200
9100

15650
2120500
621200
6000 6000
64300
4200
10000
11000
3259350
3394750 3743300
348550
3743300 3743300
 348550
104565
104565
243985 243985
348550 348550 2575400 2574400
Adjusting entries
Accounts receivable 15000
Cash 15000

Doubtful Accounts expense 15650

Allowance for Doubtful Accounts 15650

Purchases 50000
Accounts payable 50000

Cost of Goods sold 2120500

Inventory, end 621200
Purchases returns and allowances 36500
Purchases 2209800
Inventory, beginning 568900

Accumulated Depreciation-equipment 11000

Gain on Sale of equipment 6000
Furniture and Equipment 5000

Depreciation expense-furniture and equip 64300

Accumulated Depreciation-furniture 64300

Prepaid Insurance 4200

Insurance Expense 4200

Prepaid Rent 10000

Rent Expense 10000

Discount on Notes Payable 11000

Interest Expense 11000

Retained Earnings 300000

Goodwill 300000