Adjusting, Closing, and Reversing Entries

The End-of-Period Spreadsheet for Vicki's Fabric Store as of December 31, 20-1 is shown.

Vickis Fabric Store End-of-Period Spreadsheet For the Year Ended December 31, 20-1
Account Title	Trial Balance	Adjustments	Adjusted Trial Balance
Debit	Credit	Debit	Credit	Debit	Credit
Cash	28,000.00						28,000.00
Accounts Receivable	14,200.00						14,200.00
Merchandise Inventory	30,000.00		(b)	31,600.00	(a)	30,000.00	31,600.00
Estimated Returns Inventory	3,000.00		(e)	1,800.00	(d)	3,000.00	1,800.00
Supplies	1,600.00				(f)	1,250.00	350.00
Prepaid Insurance	3,600.00				(g)	2,400.00	1,200.00
Land	120,000.00						120,000.00
Building	400,000.00						400,000.00
Accum. Depr.Building		60,000.00			(h)	20,000.00		80,000.00
Equipment	90,000.00						90,000.00
Accum. Depr.Equipment		12,000.00			(i)	4,000.00		16,000.00
Accounts Payable		11,420.00						11,420.00
Customer Refunds Payable		4,200.00	(c)	1,700.00				2,500.00
Wages Payable					(j)	520.00		520.00
Sales Tax Payable		2,000.00						2,000.00
Unearned Costume Design Revenue		5,000.00	(k)	3,800.00				1,200.00
Note Payable		80,000.00						80,000.00
Vicki Roberts, Capital		387,620.00						387,620.00
Vicki Roberts, Drawing	21,610.00						21,610.00
Income Summary			(a)	30,000.00	(b)	31,600.00	30,000.00	31,600.00
			(d)	3,000.00	(e)	1,800.00	3,000.00	1,800.00
Sales		374,500.00						374,500.00
Sales Returns and Allowances	12,800.00				(c)	1,700.00	11,100.00
Costume Design Revenue		1,200.00			(k)	3,800.00		5,000.00
Purchases	141,500.00						141,500.00
Purchases Returns and Allow.		1,800.00						1,800.00
Purchases Discounts		830.00						830.00
Freight-In	800.00						800.00
Wages Expense	65,000.00		(j)	520.00			65,520.00
Advertising Expense	810.00						810.00
Supplies Expense			(f)	1,250.00			1,250.00
Phone Expense	1,210.00						1,210.00
Utilities Expense	3,240.00						3,240.00
Insurance Expense			(g)	2,400.00			2,400.00
Depr. ExpenseBuilding			(h)	20,000.00			20,000.00
Depr. ExpenseEquipment			(i)	4,000.00			4,000.00
Interest Expense	3,200.00						3,200.00
	940,570.00	940,570.00		100,070.00		100,070.00	996,790.00	996,790.00
							288,030.00	415,530.00
Net Income							127,500.00

Required:

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3. Prepare closing entries.

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-1 Dec. 31						1
2							2
3							3
4							4
5							5
6							6
7	Dec. 31						7
8							8
9							9
10							10
11							11
12							12
13							13
14							14
15							15
16							16
17							17
18							18
19							19
20							20
21	Dec. 31						21
22							22
23							23
24	Dec. 31						24
25							25

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2 and 3 continued. Post adjusting and closing entries to an Income Summary T account.

Income Summary
Beginning Inventory		Ending Inventory
Beginning Estimated Returns Inventory		Ending Estimated Returns Inventory
		Revenue
Expense
Net Income

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3. continued Post to a Capital T account. There were no additional investments this year.

Vicki Roberts, Capital
		Beginning Balance
Drawing		Net Income
		Ending Balance

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4. Prepare a post-closing trial balance.

Account	Debit balance	Credit balance
Cash
Accounts Receivable
Merchandise Inventory
Estimated Returns Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation-Building
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Customer Refunds Payable
Note Payable
Wages Payable
Sales Tax Payable
Unearned Costume Design Revenue
Vicki Roberts, Capital

Question Content Area

5. Prepare the reversing entry.

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-2 Jan. 1						1
2							2