The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of its fiscal year, are as follows Data for the adjustments are as follows Assume that Markeys Mountain Shop uses the perpetual inventory system a Merchandise Inventory at December 31, $140,357 b Store...

The Answer is in the image, click to view ...

The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the

Question:

The accounts and their balances in the ledger of Markey’s Mountain Shop as of December 31, the end of its fiscal year, are as follows:

Cash Accounts Receivable Merchandise Inventory Store Supplies Prepaid Insurance Land Building Accumulated

Data for the adjustments are as follows. Assume that Markey’s Mountain Shop uses the perpetual inventory system.
a. Merchandise Inventory at December 31, $140,357.
b. Store supplies inventory (on hand) at December 31, $540.
c. Depreciation of building, $3,400.
d. Depreciation of store equipment, $3,800.
e. Salaries accrued at December 31, $1,250.
f. Insurance expired during the year, $1,480.

Required
1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL.
2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.

Adjusting Entries From Page 63:

Assets + Debit Credit Cash + Debit Credit (p) 1,850 Equipment + Debit Credit (p) 3,780 Liabilities + Debit