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A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown below. Basket Corner UNADJUSTED TRIAL BALANCE December 31, 20- ACCOUNT

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A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown below. Basket Corner UNADJUSTED TRIAL BALANCE December 31, 20- ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,000.00 Accounts Receivable 8,100.00 3 Merchandise Inventory 32,000.00 4 Supplies 7,100.00 5 Prepaid Insurance 3,600.00 6 Land 40,000.00 45,000.00 7 Building 8 Accumulated Depreciation-Building 16,000.00 Instructions Chart of Accounts Amount Descriptions General Journal Worksheet Instructions 8 Accumulated Depreciation Building 16,000.00 27,000.00 Store Equipment 10 Accumulated Depreciation Store Equipment 5,500.00 3,600.00 6,200.00 6,300.00 11 Accounts Payable 12 Wages Payable 13 Sales Tax Payable 14 Unearned Decorating Revenue 15 Mortgage Payable 16 L. Palermo, Capital 17 L Palermo, Drawing 18 Income Summary 36,000.00 112,050.00 31,000.00 19 Sales 125,000.00 20 Sales Returns and Allowances 2,600.00 21 Decorating Revenue 22 Purchases 38,000.00 Instructions 22 Purchases 38,000.00 2,200.00 1,700.00 1,900.00 23 Purchases Returns and Allowances 24 Purchases Discounts 25 Freight-in 26 Wages Expense 27 Advertising Expense 28 Supplies Expense 29 Phone Expense 30 Utilities Expense 38,000.00 4,200.00 1,870,00 8,400.00 31 Insurance Expense 32 Depreciation Expense-Building 33 Depreciation Expense-Store Equipment 34 Miscellaneous Expense 780.00 35 Totals 314,550.00 314,550.00 Year-end adjustment information is provided below. (a and b) Merchandise inventory costing $24,000 is on hand as of December 31, 20- (The periodic inventory system is used.) Supplies remaining at the end of the year, $2,100. Unexpired insurance on December 31, $2,600. Depreciation expense on the building for 20-- $5,300. Depreciation expense on the store equipment for 20- $3,800. Unearned decorating revenue as of December 31, $1,650. Wages earned but not paid as of December 31, $750. Required: 1. Complete the Adjustments columns 2. Complete the work sheet. 3. Enter the adjustments in a general journal

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