Record the necessary adjusting entries at December 31 b Prepare a multi step

Record the necessary adjusting entries at december 31

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a. Record the necessary adjusting entries at December 31. b. Prepare a multi-step income statement for the year. Combine all the operating expenses into one line on the income statement for selling, general and administrative expenses. a.
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General Journal Date Description Ref. Debit Credit Dec. 31 Insurance Expense 1 1,500 0 Prepaid Insurance 0 1,500 To record expired insurance. 31 Depreciation Expense - Furniture & Fixtures 2 2,000 0 Accumulated Depreciation - Furn. & Fixtures 0 2,000 To record depreciation expense for furniture for the year. 31 Depreciation Expense - Delivery Equipment 3 11,000 0 Accumulated Depreciation - Delivery Equipment 0 11,000 To record depreciation expense for delivery equipment for the year. 31 Salaries Expense 4 1,800 0 Office salaries expense 1,200 0 Salaries Payable 0 3,000 To record accrued salaries at December 31. 31 Office Supplies Expense 5 3,000 0 Office Supplies 0 3,000 To record office supplies used. b. Do not use negative signs with your answers. BOSTON TRADING COMPANY Income Statement For the Year Ended December 31 Sales Revenue $ 610,000 Cost of Goods Sold 394,000 Gross Profit on Sales 216,000 Operating Expenses Selling, General, and Administrative Expense 206,100 Income before Income Taxes 9,900 Income Tax Expense 9,000 Net Income $ 900
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