Case Study Project. Spring 2022

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QUESTION
Students: AlMurr, Ahmad / Amiar, Wiliann / Boutros, Assad
Due date: April 18, 2022 or before
The trial balance of Sigma Corporation contained the following accounts at June 30, 2022, the end of the
company’s fiscal year.
Sigma Corporation
Trial Balance
June 30, 2022
Debit Credit
Cash $ 29,100
Accounts Receivable 18,500
Allowance for Doubtful Accounts $ 850
Notes Receivable 18,400
Merchandise Inventory 35,600
Store Supplies 4,000
Prepaid Insurance 12,600
Store Equipment 28,000
Accumulated Depreciation – Store Equipment 5,400
Delivery Equipment 16,000
Accumulated Depreciation – Delivery Equipment 2,700
Notes Payable 17,800
Accounts Payable 21,400
Share Capital – Ordinary 58,000
Retained Earnings 21,400
Dividends 8,800
Sales 398,250
Sales Returns and Allowances 9,400
Cost of Goods Sold 210,500
Salaries Expense 75,600
Advertising Expense 39,200
Utilities Expense 2,500
Repair Expense 1,800
Delivery Expense 4,000
Rent Expense 5,000
Interest Expense 6,800
Totals $525,800 $525,800
Page 2 of 3
Instructions
1- Prepare the adjusting entries for these accounts:
– Store supplies (Supplies expense)
– Accumulated Depreciation – Store Equipment
– Accumulated Depreciation – Delivery Equipment
– Allowance for doubtful accounts (Bad debt expense)
– Note receivable (Interest revenue)
– Note payable (Interest expense)
– Salaries expense
– Insurance Expense
– COGS
You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in
consistency with your trial balance.

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