ACC 421Intermediate Financial Accounting IAxia College of University of Phoenix

ACC 421Intermediate Financial Accounting
IAxia College of University of Phoenix
(UoP)Intermediate AccountingWeygandt Kieso WarfieldWeek Two (Week
2)Problem 3-9 (P3-9) (Adjusting and Closing).
Presented below is the December 31 trial balance of Nancy Drew
Boutique.AND SO
ONInstructions(a) Construct T-accounts and enter the
balances shown.(b) Prepare adjusting journal entries for the following and
post to the T-accounts. (Omit explanations.)Open additional T-accounts as
necessary. (The books are closed yearly on December 31.)(1) Bad debts are
estimated to be $1400.(2) Furniture and equipment is depreciated based on a
6-year life (no salvage value).(3) Insurance expired during the year
$2550.(4) Interest accrued on notes payable $3360.(5) Sales salaries
earned but not paid $2400.(6) Advertising paid in advance $700.(7)
Office supplies on hand $1500 charged to Office Expense when purchased.(c)
Prepare closing entries and post to the accounts.