Floozy had the following selected account balances as ofDecember 31, 2014.
Accounts receivable $250,000
Notes receivable 75,000
Prepaid rent 168,000
Supplies 60,000
Inventory 420,000
Equipment (historical cost) 640,000
Accounts payable 176,000
Salaries payable 15,000
Accumulated depreciation 174,000
The following information was received from Floozy's accountant.Adjusting entries have not yet been made.
a. It is estimated that $16,500 of accounts will not becollectible. A provision for uncollectible accounts has never beenmade by Floozy.
b. Supplies remaining at the end of the year were $27,000.
c. Equipment is straight-line depreciated over 20 years with a$60,000 salvage value.
d. Accrued salaries at 12/31/14 were $27,500.
e. The note receivable was signed by the customer on November 1,2014. It is a 6-month note with an interest rate of 12%, with theprinciple and interest paid at maturity.
f. Rent was paid on August 1, 2014, for 24 months and recordedin a prepaid rent account.
g. Floozy does not elect to use the fair value option for any ofits financial assets or liabilities. Determine the adjustmentsnecessary for December 31, and indicate the adjusted balances ofthe selected accounts at December 31, 2014.
Calculate the values for the following items:
1 Accounts receivable (net)
2 Notes receivable
3 Prepaid rent
4 Supplies
5 Inventory
6 Equipment (net)
7 Accounts payable
8 Salaries payable
9 Accumulated depreciation
