At the end of January, TJ's Specialty Shop showed the following spreadsheet and financial statements: TJ's Specialty Shop End-of-Period Spreadsheet For the Month Ended January 31, 20-2 Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit Cash 15,086.00 15,086.00 Accounts Receivable 6,951.00 6,951.00 Merchandise Inventory 19,700.00 (b) 19,000.00 (a) 19,700.00 19,000.00 Estimated Returns Inventory 300.00 (e) 360.00 (d) 300.00 360.00 Supplies 525.00 (f) 410.00 115.00 Prepaid Insurance 1,000.00 (g) 32.00 968.00 Land 8,750.00 8,750.00 Building 52,000.00 52,000.00 Accumulated Depreciation-Building 10,000.00 (h) 67.00 10,067.00 Store Equipment 28,750.00 28,750.00 Accumulated Depreciation-Store 9,750.00 (i) 38.00 9,788.00 Equipment Prepaid Insurance 1,000.00 (g) 32.00 968.00 Land Building 8,750.00 8,750.00 52,000.00 52,000.00 Accumulated Depreciation-Building 10,000.00 (h) 67.00 10,067.00 Store Equipment 28,750.00 28,750.00 Accumulated Depreciation-Store 9,750.00 (1) 38.00 9,788.00 Equipment Accounts Payable 3,550.00 3,550.00 Customer Refunds Payable 400.00 (c) 100.00 500.00 Wages Payable (j) 330.00 330.00 Sales Tax Payable 1,958.00 1,958.00 Mortgage Payable 12,525.00 12,525.00 Tom Jones, Capital 91,903.00 91,903.00 Tom Jones, Drawing Income Summary (a) 19,700.00 (b) 19,000.00 19,700.00 Sales Sales Returns and Allowances Purchases (d) 300.00 (e) 360.00 9,600.00 800.00 (c) 100.00 3,500.00 19,000.00 300.00 360.00 9,600.00 900.00 3,500.00 Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances 9,600.00 800.00 (c) 100.00 900.00 3,500.00 3,500.00 300.00 300.00 56.00 56.00 Purchases Discounts Freight-In Wages Expense 1,870.00 (1) 330.00 2,200.00 Advertising Expense Supplies Expense Phone Expense Utilities Expense Insurance Expense Depreciation Expense-Building Depreciation Expense-Store Equipment Miscellaneous Expense (f) 410.00 410.00 180.00 180.00 630.00 630.00 (g) 32.00 32.00 (h) 67.00 67.00 (1) 38.00 38.00 Interest Expense Net Income 140,042.00 140,042.00 40,337.00 40,337.00 159,937.00 159,937.00 27,957.00 29,316.00 1,359.00 Revenue from sales: TJ's Specialty Shop Income Statement For Month Ended January 31, 20-2 Sales Less sales returns and allowances Net sales Cost of goods sold: Merchandise inventory, Jan. 1 Estimated returns inventory, Jan. 1 $9,600 900 $8,750 $19,700 300 $20,000 Purchases $3,500 Less purchases returns and allowances $300 Less purchase discounts 56 356 Cost of goods purchased 3,144. Goods available for sale $23,144 Less: Merchandise inventory, Jan. 31 $19,000 Less: Estimated returns inventory, Jan. 31 Cost of goods sold 360 19,360 3,784 Less: Estimated returns inventory, Jan. 31 360 19,360 Cost of goods sold 3,784 $4,916 Gross profit Operating expenses: Wages expense Supplies expense Phone expense Utilities expense Insurance expense Depreciation expense-building Depreciation expense-store equipment Total operating expenses Net income $2,200 410 180 630 32 67 38 3,557 $1,359 TJ's Specialty Shop Statement of Owner's Equity For Month Ended January 31, 20-2 Tom Jones, capital, January 1, 20-2 Net income for the month Tom Jones, capital, January 31, 20-2 Current assets: Cash Accounts receivable Merchandise inventory Estimated returns inventory Supplies Prepaid insurance TJ's Specialty Shop Balance Sheet January 31, 20-2 Assets $91,903 1,359 $93,262 $15,086 6,951 19,000 360 115 968 Supplies Prepaid insurance Total current assets Property, plant, and equipment: Land 115 968 $8,750 Building $52,000 Less accumulated depreciation 10,067 41,933 Store equipment $42,480 $28,750 Less accumulated depreciation 9,788 18,962 Total property, plant, and equipment 69,645 Total assets $112,125 Current liabilities: Accounts payable Customer refunds payable Wages payable Sales tax payable Mortgage payable (current portion) Total current liabilities Liabilities $3,550 500 330 1,958 600 $6,938 Customer refunds payable Wages payable Sales tax payable Mortgage payable (current portion) Total current liabilities Long-term liabilities: Mortgage payable Less current portion Total liabilities Tom Jones, capital Total liabilities and owner's equity Owner's Equity 500 330 1,958 600 $6,938 $12,525 600 11,925 $18,863 93,262 $112,125 7. Journalize the closing entries. (Hint: Close all revenue and expense account balances listed in the Income Statement columns of the work sheet. Then, close Income Summary.) 20-2 DATE Jan. 31 Jan. 31 GENERAL JOURNAL DESCRIPTION POST. REF. DEBIT PAGE 4 CREDIT