The December 31 trial balance of Rivers Edge Canoe & Kayak is included in your working papers. 

Instructions

1. Calculate and record end-of-period adjustments on the work sheet

a. Ending Merchandise Inventory is $15,000.

b. Supplies on hand total $1,450.

c. The amount of the expired insurance premium is $5,000. d. Use the following information to calculate the estimated annual depreciation expense using the straight-line method.

e. The total federal income tax expense for the year is $4,250. 

2. Complete the work sheet.

3. Journalize and post the adjusting entries on page 16 of the general journal.

4. Journalize and post the closing entries on page 16 of the general journal.

Transcribed Image Text:

Plant Asset Store Equipment Delivery Truck Building Cost $ 13,000 32,000 160,000 Estimated Disposal Value $ 1,000 2,000 10,000 Estimated Useful Life 10 years 10 years 25 years