A December 31, 1990, year-end, unadjusted trial balance from the ledger of The Value Store, a single proprietorship, is as follows:

\section*{Required}
1. Copy the unadjusted trial balance on a work sheet form and complete the work sheet using the following information:

a. Store supplies inventory, \(\$ 200\).

b. Office supplies inventory, \(\$ 125\).

c. Expired insurance, \(\$ 2,235\).

d. Estimated depreciation of store equipment, \(\$ 3,180\).
\(e\). Estimated depreciation of office equipment, \(\$ 575\).

f. Ending merchandise inventory, \(\$ 52,320\).

2. Journalize closing entries for the store.
3. Open a balance-column Merchandise Inventory account and enter a December 31,1989 , balance of \(\$ 50,960\). Then post the portions of the closing entries that affect the account.

Transcribed Image Text:

THE VALUE STORE Unadjusted Trial Balance December 31, 1990 Cash. Store supplies. Merchandise inventory $ 2,000 50,960 1,175 Office supplies 365 Prepaid insurance. 2,730 Store equipment. 31,815 Accumulated depreciation, store equipment $ 12,810 Office equipment 8,870 Accumulated depreciation, office equipment 3,200 Accounts payable 7,305 Don Boise, capital. 60,450 Don Boise, withdrawals. 27,000 Sales 285,645 Sales returns and allowances 1,745 Sales discounts 3,180 Purchases 171,375 Purchases returns and allowances. 1,110 Purchases discounts. 4,410 Transportation-in 965 Sales salaries expense. 31,920 Rent expense, selling space 19.350 Advertising expense 570 Store supplies expense. -0- Depreciation expense, store equipment -0- Office salaries expense. 18,630 Rent expense, office space. 2,280 Office supplies expense -0- Insurance expense. -0- Depreciation expense, office equipment -0- Totals.. $374,930 $374,930