Download: JRL Corporation Solution

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The following trial balance was taken from the books of JRL Corporation on December 31, 2011.
Prepare the necessary journal entries and an Adjusted Trial Balance.

JRL Corporation
Trial Balance
December 31, 2011
Account				Debit	Credit
Cash				 $    12,000			At year end, the following items have not been recorded:
Accounts Receivable			       40,000
Note Receivable			          7,000			A	Insurance expired during the year, $2,000
Allowance for Doubtful Accounts		 $      1,800		B	Estimated bad debts, 1% of gross sales.
Merchandise Inventory		       44,000			C	Depreciation expense on furniture and equipment, 10% per year
Prepaid Insurance			          4,800			D	Interest at 6% is receivable on the note for one full year
Furniture and Equipment		     125,000			E	Rent paid in advance at December 31, $5,400 (originally paid in advance)
Accumulated Depreciation – F & E		       25,000		F	Accrued salaries at December 31, $5,800
Accounts Payable				       10,800
Common Stock				       34,000
Retained Earnings				       55,000
Sales					     280,000
Cost of Goods Sold			     111,000
Salaries Expense			       50,000
Rent Expense			       12,800
Totals				 $  406,600	 $  406,600

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