Accounting Work Sheet

For the Year Ended December 31, 2011

(All numbers are in $,000)

Account Trial Adjustments

Balance

	Dr.	Cr.	Dr.	Cr.
Cash	62
Accounts Rec.	2
Inventory	18
Prepaid Rent	14
Furniture	6
Accumulated Amortization- Furniture		6
Accounts Payable		15
Salary Payable		0
Unearned Revenue		8
Katie Kup, Capital		60
Katie Kup, Withdrawals	20
Sales Revenue		86
Sales Discounts	2
Sales Returns and Allowances	28
Cost of Goods Sold	2
Salary Expense	13
Rent Expense	0
Utilities Expense	8
Amortization Expense- Furniture
	175	175
Net Income/Loss

1. The Prepaid rent account represents six months rent paid October 1, 2011
2. The Furniture was purchased January 1, 2010 and is expected to have a 5 year useful life with no salvage value.
3. The unearned revenue represents a prepayment on February 1, 2011 for merchandise to be delivered over 15 months.
4. The Eatery employs 5 people, each who earn $200 a day and they work Monday to Friday. The year end of December 31, 2011 is on a Friday. The employees have not been paid for the last 5 days.
5. The hydro bill of $3,000 for December was received but not recorded or paid.
6. A new employee has been hired for $150 a day, with a 5 day week, and will start work on January 1, 2012.