1. Because the sales on Valentine's Day was great. Kerry decided at the end of the
month to accrued $5,000 in additional wages for her staff members. In addition, a
miscalculation of overtime hours had the employees being over paid Five hundred
dollars $500 for the month of February as it relates to wages.
Two hundred dollars ($200) of the commission received related to the month of
March 2021
II.
MT.
Of the amount paid for rent approximately two thousand dollars ($2,000) was
prepaid.
IV.
For the first month of business, depreciation is calculated at 10% per annum on
the straight line basis on the refrigerator and office furniture; and 20% per annum
on the Delivery Van; depreciation is charged to the accounts on a monthly basis.
V.
Of the remaining balance owed by Chocolate delights, 10% must be written off as
bad debts.
Note: when doing the adjusted T accounts only the accounts that have been
affected need to be done
E. Post the above adjusting entries to their respective accounts in the general ledger
creating additional accounts as the journals would dictate
F. Prepare the adjusted trial balance with the inclusion of the above balances