John Neff owns and operates Waikiki Surf Shop. A year-end trial balance. Year-end adjustment data for the Waikiki Surf Shop are shown below. (a and b) A physical count shows merchandise inventory costing $45,000 on hand as of December 31, 20--. Neff uses the periodic inventory system.

(c) Supplies remaining at the end of the year, $600.

(d) Unexpired insurance on December 31, $900.

(e) Depreciation expense on the building for 20--, $6,000.

(f) Depreciation expense on the store equipment for 20--, $4,500.

(g) Wages earned but not paid as of December 31, $675.

(h) Unearned boat rental revenue as of December 31, $3,000.

REQUIRED

1. Prepare a year-end work sheet.

2. Journalize the adjustingentries.

Transcribed Image Text:

Waikiki Surf Shop Trial Balance December 31, 20 - CREDITRALANCI ACERUNT HDE DEBIT ALANKE 30 000 00 22 5 00 00 57 0 00 00 2|700 00 36 00 00 15 0 00 00 135 000 00 Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Land Building 24 000 00 Accumulated Depredation-Building 75 0 00 00 Store Equipment 22 500 00 7500 00 15 0 00 00 Accumulated Depredation-Store Equipment Notes Payable Accounts Payable Wages Payable 33 000 00 233 700 00 Unearned Boat Rental Revenue J. Neff, Capital J. Neff, Drawing 30 0 00| 00 Income Summary 300 750 00 Sales 18 00 00 Sales Retums and Allowances Boat Rental Revenue 157 5 00 00 Purchases 1200 00 Purchases Returns and Allowances 1500 00 Purchases Discounts 4 50 00 63 000 00 11 2 50 00 Freight-In Wages Expense Advertising Expense Supplies Expense 52 50 00 18 0 00 00 Telephone Expense Utilities Expense Insurance Expense Depreciation Expense Building Depreciation Expense-Store Equipment 10 875 00 Miscellaneous Expense Interest Expense 2 2|5 00 639 15 0 00 639 150 00