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Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 20x1, the firm's general ledger contained the accounts and balances that follow. HEALTHY EATING FOODS COMPANY Worksheet Year Ended December 31, 20X1 Ad Tustnents Adjusted Trial Balance DOLE Credit Debit Credit $ 39,300.00 35,400.00 Income Statement Debit Credit Balance Sheet Debit Credit $ 39,380.00 35,400.00 3,372.00 3,812.00 3,812.00 79,600.00 57.ee.ee 9.400.0 3,768.00 79,000.00 1,200.00 1,880.80 79,000.00 1,200.00 1,500.00 8,620.00 8,628.80 1,375.00 4, 125.00 4, 125.00 Trial Balance Account Name Debit Credit Cash $ 30,300.00 Accounts 35,400.00 Receivable Allowance for Doubtful 440.00 Accounts Merchandise BT.000.00 Inventory Supplies 10,500.00 Prepaid 5.640.00 Insurance Office 8.620.00 Equipment Accumulated Depr.-Office 2.750.00 Equipment Warehouse Equipment 28,458.90 Accumulated Depr- Warehouse 9,700.00 Equipment Notes Payable 33, 00:50 -Bank Accounts 12.490.be Payable Interest Payable Social Security Tax 1.700.00 Payable Medicare Tax Payable 390.00 Federal 28, 450.00 26,450.50 4,850.00 14,550.00 14,558.00 33,000.00 33,000.00 12,400.00 12,400.00 650.00 GG0.00 660.00 322.40 2, 0224 2,122.40 75.40 465.40 465.40 390.00 75.49 465.40 455.40 31.20 31.20 31.29 280. 280.80 280.00 5,200.00 5,200.00 5,200.00 110, 652.00 110, 652.00 110,652.00 56,200.00 56,200.00 655, 770.00 655, 779.00 655, 775.00 10,200.00 10,200.00 Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker Capital Phillip Tucker 55,200.00 Drawing Sales Sales Returns and 10,200.00 Allowances Purchases 351,000.00 Purchases Returns and Allowance Income Sossary Rent Expenses 36,200.00 Telephone 7.400.00 Expense Salaries 161,000.00 Expense Payroll Taxes 13,200.00 Expense Supplies Expense Insurance Expense Depr Expense -Office Equipent DeprExpense -Warehouse Eousonant 351,000.00 351,000.00 9.400.00 9,400.00 9,400.00 87,000.00 79,800.00 79,000.00 79,000.00 87,000.00 30,200.00 2.400.00 87,000.00 36,200.00 2.400.00 5,200.00 166,200.00 169,200.00 789.80 13, 309.00 13, 905.0 9,400.00 9,408.00 3,400.00 3,768.65 3. 760.00 3.750.00 1.375.00 1.375.00 1,375.00 4.858.00 4,690.00 4,850.00 3,750.00 3,76e.ee 3,760.00 1,375.00 1,375.00 1,375.00 4.850.00 4,850.00 4,85e.ee Expense Depr. Expense -Office Equipment Depr. Expense Warehouse Equipment Uncollectible Accounts Expense Interest Expense Totals Net Income 3,372.00 3,372.00 3, 372.ee 660.ee 660.00 668.00 $836,210.00 $836.210.ee $195,326.80 $195,326.80 $931, 376.88 $931, 376.86 590,326.00 3744,178.00 $241,050.00 $187,190.00 53,851.20 53,851. 20 3744,178.00 $744,178.08 $241,050.00 $241,050.se Required: 1. Record adjusting entries in the general journal as of December 31, 20X1 2. Record closing entries in the general journal as of December 31, 20x1. 3. Record reversing entries in the general journal as of January 120x2 Analyze: Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,400 are paid on January 3? Complete this question by entering your answers in the tabs below. Req 1 to 3 Analyze Record adjusting entries and closing entries in the general journal as of December 31, 20X1 and reversing entries as of January 1, 20X2 (Round your answers to 2 decimal places.) View transaction is X 1 Record an adjustment entry for beginning inventory. 2 Record an adjustment entry for ending inventory. 3 During 20x1, the firm had net credit sales of $562,000; past experience indicates that 0.6 percent of these sales should result in uncollectible accounts. 4 pit 4 On December 31, 20x1, an inventory of supplies showed that items costing $1,200 were on hand. 5 On May 1, 20X1, the firm purchased a one-year insurance policy for $5,640. 6 6 On January 2, 20x1, the firm purchased office equipment 6 On January 2, 20x1, the firm purchased office equipment for $8,620. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $370. 7 On January 2, 20x1, the firm purchased warehouse equipment for $28,450. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,200. 8 On November 1, 20X1, the firm issued a four-month, 12 percent note for $33,000. 9 On December 31, 20X1, the firm owed salaries of $5,200 that will not be paid until 20X2. 10 On December 31, 20X1, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,200 of accrued wages. 11 On December 31, 20x1, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5,200 of accrued wages. 12 Record the closing entry for revenue and other credit items. 13 Record the closing entry for expenses and other debit items. 14 Record the closing entry for the balance of income summary 15 Record the closing entry for the drawing account. 16 Record the reversing entry for interest. 17 Record the reversing entry for salaries. 18 Record the reversing entry for social security & Medicare. 19 Record the reversing entry for federal & state employment taxes. 1 Record payment of salaries. Year Ended December 31, 20x1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit $ 30,300.00 35,400.00 Income Statement Dobit Credit Balance Sheet Debit Credit $ 30,300.00 35,400.00 3, 372.00 3,812.00 3,812.00 79,000.00 87,000.00 9,400.00 3,760.00 79,000.00 1,200.00 1,880.00 79,000.00 1,200.00 1.880.00 8,620.00 8,620.00 1,375.ee 4, 125.00 4, 125.00 20,450.00 20,450.00 Triat Balance Account Name Debit Credit Cash $ 38,300.00 Accounts 35,400.00 Receivable Allowance for Doubtful 440.00 Accounts Merchandise 87,000.00 Inventory Supplies 10,690.00 Prepaid Insurance 5,640.00 office B.620.00 Equipment Accumulated Depr.-Office 2,750.00 Equipment Warehouse 28,450.00 Equipment Accumulated Depr.- 9,700.00 Warehouse Equipment Notes Payable Bank 33,000.00 Accounts 12,400.00 Payable Interest Payable Social Security Tax 1,700.00 Payable Medicare Tax Payable 398.00 Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries 4,850.00 14,550.00 14,550.00 33,000.00 33,000.00 12,400.00 12,400.00 560.00 650.00 560.00 32248 2,022.40 2,022.40 75.40 465.40 465.40 31. 20 31.20 31.20 280.80 200.88 280.60 5.260.66 5,200.00 5,200.00 JL Unemployment 280.se Tax Payable 280.89 280.80 Salaries Payable S, 200.ee 5,200.00 5,200.00 Phillip Tucker. 110, 652.00 Capital 110, 652.00 110,652.00 Phillip Tucker, 55,200.00 Drawing 56,200.00 55,200.00 Sales 655,778.00 655,778.00 Sales Returns 655,778.00 and 19,200.00 10,200.00 10,200.00 Allowances Purchases 351,000.00 351,000.00 351,000.00 Purchases Returns and 9,400.00 9,400.00 9. 400.00 Allowance Income Summary 87,000.00 70,000.00 87,000.00 79,000.00 87,000.00 79,000.00 Rent Expenses 30,200.00 36,200.00 36,200.00 Telephone 2,400.00 Expense 2,400.00 2,400.00 Salaries 151,000.00 Expense 5,290.00 166,200.00 166,200.00 Payroll Taxes 13,200.00 709.80 13,509.30 13,009.30 Expense Supplies 9,400.00 9,400.00 Expense 9,400.00 Insurance Expense 3, 760.00 3,760.00 3. 760.00 Depr - Expense -Office 1,375.00 1.375.00 1.375.00 Equipment Depr. Expense -Warehouse 4,850.00 4,850.00 4.850.00 Equipment Uncollectible Accounts 3,372.00 3. 372.00 3,372.00 Expense Interest 550.00 66000 660.00 Expense Totals 5835,210.00 5836,210.00 $195,326.805195,326.89 5931.276.80 5931, 176.0 5690, 326.00 5744,178.00 $241,050.00 $187, 199.90 ATU Expense 3,700.00 3,760.00 3,760.00 Depr. Expense -office 1,375.00 1,375.00 Equipment 1,375.00 Depr. Expense Warehouse 4,850.00 4,850.00 Equipment 4,850.00 Uncollectible Accounts 3,372.00 3,372.00 3, 372.00 Expense Interest Expense 660.00 660.80 660.60 Totals $836,210.00 $836,210.89 $105,326.80 $195,326.80 $931, 376.80 $931, 376.80 $690,326,80 $744, 178.00 $241,050.00 5187. 195.00 Net Income 53, 851.20 53,851.20 $744,178.00 $744, 178.00 5241,050.00 5241, 85e.ee Required: 1. Record adjusting entries in the general journal as of December 31, 20X1. 2. Record closing entries in the general journal as of December 31, 20X1. 3. Record reversing entries in the general journal as of January 1, 20x2. Analyze: Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when saiaries of $6,400 are paid on January 3? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Analyze Record adjusting entries and closing entries in the general journal as of December 31, 20X1 and reversing entries as of January 1, 20x2. (Round your answers to 2 decimal places) View transaction list 1 Record an adjustment entry for beginning inventory. 2 Record an adjustment entry for ending inventory. 3 During 20x1, the firm had net credit sales of $562,000; past experience indicates that 0.6 percent of these sales should result in uncollectible accounts. 4 On December 31, 20x1, an inventory of supplies showed that items costing $1,200 were on hand. 5 On May 1, 20x1, the firm purchased a one-year insurance policy for $5,640. 6 6 On January 2, 20x1, the firm purchased office equipment 6 On January 2, 20x1, the firm purchased office equipment for $8,620. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $370. 7 On January 2, 20x1, the firm purchased warehouse equipment for $28,450. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,200. 8 On November 1, 20x1, the firm issued a four-month, 12 percent note for $33,000. / 9 On December 31, 20x1, the firm owed salaries of $5,200 that will not be paid until 20X2. 10 On December 31, 20x1, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,200 of accrued wages. 11 On December 31, 20x1, the firm owed the federal unemployment tax (assume 0.6 percent) and the state unemployment tax (assume 5.4 percent) on the entire $5,200 of accrued wages. 12 Record the closing entry for revenue and other credit items. 13 Record the closing entry for expenses and other debit items. 14 Record the closing entry for the balance of income summary 15 Record the closing entry for the drawing account. 16 Record the reversing entry for interest. 17 Record the reversing entry for salaries. 18 Record the reversing entry for social security & Medicare. 19 Record the reversing entry for federal & state employment taxes. Journal entry worksheet