Information from the March 31, 2014, year-end, unadjusted trial balance of The Online Store is as follows:

Required
1. Copy the unadjusted trial balance on a work sheet form and complete the work sheet using the following information:
a. Supplies inventory at year-end, $920.
b. The balance in the Prepaid Rent account represents a six-month contract effective November 1, 2013.
c. Depreciation on the store equipment, $1,600.
d. The useful life and trade-in value of the office equipment were originally estimated to be seven years and $250, respectively.
e. Ending merchandise inventory, $19,200.
2. Journalize closing entries for the store. Use page 14 for your journal.
3. Open a balance column Merchandise Inventory account (110) and enter the March 31, 2013, balance of $39,500. Then post those portions of the closing entries that affect the account.

Transcribed Image Text:

Debit Credit Cash Merchandise inventory Supplies Prepaid rent. Store equipment.... Accumulated depreciation, store equipment. Office equipment....nn Accumulated depreciation, office equipment. Accounts payabl. Lucy Baker, capital. Lucy Baker, withdrawas... 39,500 1,600 19,200 60,000 $ 14,000 23,000 6,500 16,000 134,600 34,000 506,750 Sales returns and allowances..13,800 6,000 346,000 4,600 7,150 Purchase returns and allowances.... Transportation-in... Salaries expense (60% selling, 4096 office) Rent expense (80% selling space; 20% office space) Advertising expense.. Supplies expense (30% selling supplies; 70% office supplies) Depreciation expense, store equipment. Depreciation expense, office equipment 16,000 58,000 49,000 .7,000 9,500 -0 8, 3689,600