The trial balance of Rustic Elegance pertains to December 31, 2007.

Adjustment data at December 31, 2007:

a. Prepaid insurance expired, $2,000.

b. Depreciation, $4,000.

c. Accrued salaries, $1,000.

d. Inventory on hand, $68,000.

Requirement 

Complete the accounting work sheet of Rustic Elegance for the year ended December 31, 2007. Key adjusting entries by letter.

Transcribed Image Text:

RUSTIC ELEGANCE Trial Balance December 31, 2007 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Furniture Accumulated depreciation Salary payable $ 2,900 10,100 71,000 3,200 23,900 $ 7,000 9,000 Note payable, long-term 20,000 Andrea Sulak, capital 58,000 Andrea Sulak, withdrawals 36,300 Sales revenue 190,000 Cost of goods sold 61,000 Salary expense 46,500 Rent expense 14,000 Utilities expense 6,700 Depreciation expense Insurance expense Interest expense Total 5,300 3,100 $284,000 $284,000