The balances of the general ledger accounts of River’s Edge Canoe & Kayak, as of August 31, are listed below. Instructions In your working papers:

1. Prepare a ten-column work sheet for River’s Edge Canoe & Kayak for the month ended August 31. The account names are entered on the work sheet. The data for the adjustments follows:

(a) The cost of the ending merchandise inventory is $45,669.

(b) The cost of the supplies on hand on August 31 is $619. 

(c) The one-year insurance premium of $1,680 was paid on April 1.

(d) The total federal income taxes owed for the year are $2,635.

2. Enter the journal entries for the adjustments on page 31 of the general journal.

3. Post the journal entries to the general ledger accounts.

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101 Cash in Bank 115 Accounts Receivable 130 Merchandise Inventory 135 Supplies 140 Prepaid Insurance 145 Delivery Equipment 150 Store Equipment 201 Accounts Payable 204 Federal Corporate Income Tax Payable 210 Employees' Federal Income Tax Payable 211 Employees' State Income Tax Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 215 Sales Tax Payable 216 Federal Unemployment Tax Payable 217 State Unemployment Tax Payable 219 U.S. Savings Bonds Payable 301 Capital Stock 305 Retained Earnings 310 Income Summary $ 15,387 2,852 49,205 3,027 1,680 19,437 29,504 13,339 632 117 472 108 2,931 77 315 150 50,000 25,425