med act hmework ch2-3.docVIP

CH2 Excalibur Corporation manufactures and sells video games for personal computers. The unadjusted trial balance as of December 31, 2011, appears below. December 31 is the companys fiscal year-end. The company uses the perpetual inventory system. ???Account Title Debits Credits ??Cash 23,300 ? ? ??Accounts receivable 32,500 ? ? ??Allowance for uncollectible accounts ? 100 ? ??Supplies 0 ? ? ??Prepaid rent 0 ? ? ??Inventory 65,000 ? ? ??Equipment 75,000 ? ? ??Accumulated depreciation—equipment ? 10,000 ? ??Accounts payable ? 26,000 ? ??Wages payable ? 3,000 ? ??Note payable ? 30,000 ? ??Common stock ? 80,000 ? ??Retained earnings ? 16,050 ? ??Sales revenue ? 180,000 ? ??Cost of goods sold 95,000 ? ? ??Interest expense 0 ? ? ??Wage expense 32,350 ? ? ??Rent expense 14,000 ? ? ??Supplies expense 2,000 ? ? ??Utility expense 6,000 ? ? ??Bad debt expense 0 ? ? ? ???????Totals 345,150 ? 345,150 ? ? ? ? Information necessary to prepare the year-end adjusting entries appears below. 1. The equipment was purchased in 2009 and is being depreciated using the straight-line method over a ten year useful life with no salvage value. 2. Accrued wages at year-end should be $4,700. 3. The company estimates that 1% of all year-end accounts receivable will probably not be collected. 4. The company borrowed $30,000 on September 1, 2011. The principal is due to be repaid in 10 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 12%. 5. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $500. 6. Prepaid rent at year-end should be $1,500. Required: Prepare the necessary December 31, 2011, adjusting entries.?(Round your answers to the nearest dollar amount. Omit the $ sign in your response.) ? ? General Journal Debit Credit 1. ??Depreciation expense? 7,500??? ? ? ???????Accumulated depreciation? ? 7,500??? ? ? ? ? 2. ??Wages expense? 1,700??? ? ? ?????