Capra’s Cycle, a sole proprietorship, has two departments, P.0.2 bicycle and clothing. The trial balance as of October 31, the end of the fiscal year, is shown on page 985.

The data for the adjustments are as follows:

a.-d. Merchandise inventories, October 31, the end of the fiscal period: bicycle department, $60,000; clothing department, $36,000

e. Depreciation of store equipment for the year, $7,230

f. Estimated uncollectible customer charge accounts (based on a percentage of charge sales), $2,190 g. Insurance expired, $585 h. Accrued wages and commissions, $555 i. Accrued interest payable, $216 The bases for apportioning expenses to the two departments are as follows:

• Wages and Commissions Expense (time sheets): bicycle department, $45,540;

clothing department, $19,515

• Advertising Expense (space): bicycle department, $7,680; clothing department,

$1,920

• Depreciation Expense (equipment ledger): bicycle department, $5,061; clothing department, $2,169

• Rent Expense, Utilities Expense, Miscellaneous Expense, Bad Debts Expense, Insurance Expense (sales): bicycle department, 60 percent; clothing depart¬

ment, 40 percent

Instructions Complete the work sheet.

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Cash Capra's Cycle Trial Balance October 31, 19- ACCOUNT NAME Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory, Bicycle Department Merchandise Inventory, Clothing Department Prepaid Insurance Store Equipment Accumulated Depreciation, Store Equipment Accounts Payable C. D. Capra, Capital DEBIT CREDIT 930000 5940000 1560 00 6300000 4200000 90000 2730000 122 1000 58080 00 9942000 C. D. Capra, Drawing 2100000 Sales, Bicycle Department 180 000 00 Sales, Clothing Department 120 000 00 Purchases, Bicycle Department Purchases, Clothing Department Freight In, Bicycle Department 8640000 6624000 360000 Freight In, Clothing Department 276000 Wages and Commissions Expense 6450000 Advertising Expense 960000 Rent Expense 1080000 Utilities Expense 217500 Miscellaneous Expense Interest Expense 163500 66000 47127000 471 2 70 00