Here are the accounts in the ledger of Palmer’s Jewel Box, with the balances as of December 31, the end of its fiscal year.

Here are the data for the adjustments.
a-b. Merchandise Inventory at December 31, $113,070.

c. Insurance expired during the year, $1,254.

d. Depreciation of building, $4,200.

e. Depreciation of store equipment, $8,580.

f. Salaries accrued at December 31, $420.
g. Store supplies inventory at December 31, $318.
Instructions 1. Complete the work sheet after entering the account names and balances into the work sheet.
2. Journalize the adjusting entries.
Instructions for General Ledger Software 1. Record the adjusting entries in the general journal.
2. Print the journal.
3. Post the general journal amounts to the general ledger.
4. Print a trial balance.
5. Print the income statement, statement of owner’s equity, and balance sheet.

Transcribed Image Text:

Cash Accounts Receivable Merchandise Inventory Store Supplies Prepaid Insurance $ 11,280 1,554 116,100 1,284 2,286 Land 15,000 Building 78,000 Accumulated Depreciation, Building 29,340 Store Equipment 77,490. Accumulated Depreciation, Store Equipment 17,160 Accounts Payable 14,070 Sales Tax Payable 2,784 Salaries Payable Mortgage Payable L. Palmer, Capital L. Palmer, Drawing Income Summary Sales 43,860 151,830 46,500 - 379,254 Sales Returns and Allowances 3,888 Purchases 250,768 Purchases Returns and Allowances 3,261 Purchases Discount 4,410 Freight In 12,200 Salary Expense 23,400