The December 31, 1990, year-end, unadjusted trial balance of the ledger of Eastman Store, a single proprietorship business, 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, \(\$ 385\).

b. Office supplies inventory, \(\$ 180\).

c. Expired insurance, \(\$ 2,765\).

d. Depreciation on the store equipment, \(\$ 5,865\).

e. Depreciation on the office equipment, \(\$ 1,755\).

f. Ending merchandise inventory, \(\$ 48,980\).
2. Journalize closing entries for the store.
3. Open a balance column Merchandise Inventory account and enter a December 31,1989 , balance of \(\$ 47,000\). Then post those portions of the closing entries that affect the account.

Transcribed Image Text:

EASTMAN STORE Unadjusted Trial Balance December 31, 1990 Cash Store supplies $ 7,305 Merchandise inventory. 47,000 1,715 Office supplies 645 Prepaid insurance. 3,840 Store equipment 57,735 Accumulated depreciation, store equipment $ 9,575 Office equipment. 14,130 Accumulated depreciation, office equipment. 3,670 Accounts payable. 4,680 Bob Eastman, capital 93,585 Bob Eastman, withdrawals. 31,500 Sales 478,850 Sales returns and allowances 3,185 Sales discounts. 5,190 Purchases. 331,315 Purchases returns and allowances 1,845 Purchases discounts ... 4,725 Transportation-in 2,810 Sales salaries expense 34,710 Rent expense, selling space 24,000 Advertising expense. 1,220 Store supplies expense -0- Depreciation expense, store equipment. -0- Office salaries expense 27,630 Rent expense, office space 3,000 Office supplies expense. -0- Insurance expense -0- Depreciation expense, office equipment. Totals $596,930 $596,930