$110$ Cash $33,890$

$111$ Accounts Receivable $192,100$

$112$ Inventory $256,400$

$113$ Estimated Returns Inventory $8,100$

$114$ Supplies $12,900$

$115$ Prepaid Insurance $30,000$

$120$ Land $140,000$

$121$ Equipment $897,100$

$122$ Accumulated Depreciation$--$ Equip. $229,600$

$210$ Accounts Payable $42,810$

$211$ Customer Refunds Payable $25,200$

$212$ Salaries Payable $0$

$213$ Interest Payable $0$

$214$ Unearned Rent $33,200$

$2$

$220$ Notes payable $($final payment due in $4$ years$)50,000$

$310$ Common Stock, $$1$ par $100,000$

$311$ Retained Earnings $499,560$

$312$ Dividends $75,000$

$410$ Sales $4,279,530$

$510$ Cost of Goods Sold $2,150,410$

$520$ Sales Salaries Expense $650,600$

$521$ Advertising expense $220,000$

$522$ Delivery Expense $36,000$

$523$ Rent expense $125,000$

$524$ Miscellaneous selling expense $42,800$

$530$ Office Salaries Expense $357,000$

$531$ Depreciation Expense$-$ Equip. $29,600$

$532$ Insurance Expense $0$

$533$ Supplies Expense $0$

$610$ Rent revenue $0$

$710$ Interest Expense $3,000$

No transactions affecting common stock occurred during this fiscal year. During December, the last

month of the fiscal year, the following transactions were completed:

Dec $4$ Purchased $$19,800$ of merchandise on account, FOB shipping point, terms $3/10,$n$/30.$

$5$ Paid transportation costs of $$395$ on the December $4$ purchase.

$9$ Returned $$2,500$ of the merchandise purchased on December $4.$

$11$ Sold merchandise on account, $$20,240,$ FOB destination, n$/30.$ The cost of the goods sold

was $$12,350.$

$12$ Paid transportation charges of $$710$ for the goods sold on December $11.$

$13$ Paid for the purchase of December $4$ less the return and the discount.

$15$ Received payment from customers on account for sales prior to December, $$13,910.$ No

discounts.

$22$ Received payment on account for the sale of December $11.$

$23$ Purchased supplies on account, n$/$eom$,$ $$1,150.$

$26$ Paid amounts owed to creditors on account for purchases prior to December, $$11,080.$ No

discounts.

$27$ Paid sales salaries, $$2,900,$ and office salaries, $$1,700.$

$28$ Sold merchandise with a list price of $$8,200$ to customers who used Visa and who

redeemed $$740$ of point$-$of$-$sale coupons. The cost of the goods sold was $$5,130.$

$29$ Paid customer a cash refund of $$3,210$ for returned merchandise from the sale of Dec. $11.$

The cost of the returned merchandise was $$1,975.$

$30$ Paid rent for store equipment for December, $$1,300.$

$31$ Paid cash for a web page advertisement, $$2,060.$

$3$

INSTRUCTIONS: ROUND ALL AMOUNTS TO THE NEAREST DOLLAR, AS NECESSARY!

$1.$ Enter the balances of each of the accounts as of November $30$ in the appropriate balance

column of a T account $($use account names and numbers$)$ or a four$-$column account. $[$You are

creating the General Ledger.$]$

$2.$ Journalize $($using the General Journal$)$ the transactions for December.

$3.$ Post the December journal entries to the General Ledger, computing the year$-$end balances

after all posting is completed.

$4.$ Prepare an Unadjusted Trial Balance as of December $31.$

$5.$ Analyze the following adjustment data assembled at the end of December. Use the adjustment

data to journalize, then post, the necessary adjusting entries.

a$.$ Merchandise inventory on hand at December $31,$ per physical count, $$250,465.$

b$.$ Insurance coverage expired during the year, $$20,100.$

c$.$ Supplies on hand at December $31,$ $$4,820.$

d$.$ Additional depreciation to be recorded on the equipment for the year, $$13,500.$

e$.$ Accrued sales salaries $$1,800$ and accrued office salaries $$890$ on December $31.$

f$.$ Accrued interest on the note payable as of December $31,$ $$410.$

g$.$ Unearned Rent at December $31$ is $$8,300.$

h$.$ Company estimates that customers will request an additional $$13,015$ of refunds related to

current year sales and the related merchandise to be costing $$6,210$ will be returned.

$6.$ Prepare an Adjusted Trial Balance as of December $31.$

$7.$ Prepare, in good form, a multiple$-$step Income Statement, a Statement of Stockholders$$ Equity,

and a classified Balance Sheet at the end of the December $31$ fiscal year. Retained earnings as

of $11/30$ equaled retained earnings as of beginning of the fiscal year $(1/1).$

$8.$ Journalize and post the necessary closing entries.

$9.$ Prepare a Post$-$Closing Trial Balance as of December $31.$