need help with univ. of phoenix class acc/421. I have attached the document.

need help with univ. of phoenix class acc/421. I have attached the document.

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P3.10.  
(adjusting and Closing)
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Presented below is the December 31 trial balance of New York Boutique.
NEW YORK BOUTIQUE
T
rial
B
alance
D
ecember
31
 
Debit
Credit
Cash
18,500 $
 
Accounts Receivable
32,000
 
Allowance for Doubtful Accounts
 
700
$
Inventory, December 31
80,000
 
Prepaid Insurance
5,100
 
Equipment
84,000
 
Accumulated Depreciation—Equipment
 
35,000
Notes Payable
 
28,000
Common Stock
 
80,600
Retained Earnings
 
10,000
Sales Revenue
 
600,000
Cost of Goods Sold
408,000
 
Salaries and Wages Expense (sales)
50,000
 
Advertising Expense
6,700
 
Salaries and Wages Expense (administrative)
65,000
 
Supplies Expense
5,000
 
 
$754,300
$754,300
Instructions
(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 debt expense is estimated to be $1,400.
2.   
Equipment is depreciated based on a 7-year life (no salvage value).
3.   
Insurance expired during the year $2,550.

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4.   
Interest accrued on notes payable $3,360.
5.   
Sales salaries and wages earned but not paid $2,400.
6.   
Advertising paid in advance $700.
7.   
Office supplies on hand $1,500, charged to Supplies Expense when 
purchased.
(c)  
Prepare closing entries and post to the accounts.

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