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Part 2
Below is the adjusted trial balance for George’s Gardening Supplies at the end of the year.
George's Gardening Supplies
Adjusted Trial Balance
December 31, 2016
Account Titles
DR
CR
Cash
$54,830
Accounts Receivable
33,500
Inventory
16,140
Prepaid Insurance
36,000
Equipment
45,000
Accumulated Depreciation
$5,000
Accounts Payable
10,000
Bank Loan
30,000
Gregg, Capital
90,000
Gregg, Drawings
5,000
Sales Revenue
113,500
Interest Revenue
6,500
Sales Returns & Allowances
1,000
Sales Discounts
1,580
Purchases
70,000
Purchase Returns and Allowances
5,800
Purchase Discounts
3,200
Freight-In
1,000
Depreciation Expense
5,000
Insurance Expense
2,500
Interest Expense
2,600
Rent Expense
6,000
Salaries Expense
11,000
Supplies Expense
4,500
Utilities Expense
750
Total
$264,000 $264,000
Note:
• The balance in the inventory account is the value at January 1, 2016. An inventory count
revealed that $33,440 of inventory is on hand at December 31, 2016.
• $10,000 of the bank loan will be paid by December 31, 2017.
Inventory: Merchandising Transactions
Chapter 7 Appendix
