Build a worksheet. Beginning balances: Cash 154,931 A/R 4,108 Inventory 46,525 Estimated Returns 700 Office Supplies 1,235 Prepaid Insurance 300 Equipment 265,000 Accumulated Depreciation 115,500 A/P 3,433 Refund Payable 500 Unearned Service Revenue 500 Jake Walter's, Capital 262,643 Jake Walter's, Withdrawal 112,000 Service Revenue 167,050 Sales Revenue 312,900 Sales Discount Forfeited 2,450 Cost of Merchandise Sold 145,687 Advertising Expense 9,250 Depreciation Expense 38,500 Insurance Expense 3,500 Office Supplies Expense 3,280 Salary Expense 37,500 Rent Expense 27,500 Telephone Expense 4770 Utilities Expense 6,725 Misc. Expense 3,465

4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the following adjustment information for December: Office supplies on hand on December 31 are $1,050. A physical count of inventory showed an ending inventory cost of $44,500. Recorded depreciation on equipment for the month, $4,200. Insurance expired during December is $300. Earned $1,700 worth of the unearned service revenue. Sales refunds estimated for the year $10,000 Cost of estimated returns for the year $2,000 WOO JW's Lock & Key had the following transactions in December Dec. 1 Paid December's rent, check #6287, $2,900 2 Paid annual premiums on property and casualty insurance policies, check #6288, $3,600. 3 Performed locksmith services on new house, sent invoice # 601 to the homeowner, Sam Mason. $2,000 4 Issued Invoice # 602 to Hastings who purchased a new safe on account, $3,550. Cost of Merchandise Sold was $1,250. 5 Purchased office supplies, check #6289, $620. 6 Purchased inventory from Key Supplies Co., $5,500 terms 1/10,n/30 7 Paid UPS $297 cash for delivery of the inventory purchased on December 6. 7 Jake deposited an additional $8,000 cash in the business. 8 Returned damaged inventory to Key Supplies Co., $500 8 Received $2,500 cash, an advance payment for locksmith services. 9 Unlocked a safe for a customer and received $1,000 cash. 9 Bought a new computer (equipment) from Office Depot on account, $1,936. 10 Sold 2 safes and received cash, 2,200. Cost of Merchandise Sold was $800. 11 Purchased 5 safes to restock inventory on account from Brinks Co, $4,187 terms, 2/5, n/45. 12 Customer returned one of the safes purchased on December 10, refunded the customer $1,300 cash. Cost of Merchandise Sold was $475. 13 Paid Verizon for wireless telephone services, $489, check # 6290. 14 Paid Key Supplies Co for the purchase on December 6, less return and discount, check #6291. 14 Received cash on account. $1,500. From Nathan Dean. Dean did not pay his November invoice #590 within the credit terms 2/10. The discount was forfeited. 15 Recorded cash sales for the store from the 1st to the 15th, $13,908. Cost of Merchandise Sold was $4,783. 16 Received $1,900 from Hastings on account. 17 Paid Office Depot on account, $500, check # 6292. 18 Performed locksmith services on account for Larry Contractor, $700. 19 Paid electricity bill for December, check #6293, $1,760. 19 Paid for Domino's pizza delivery for the December office party, check #6294, $175 20 Jake withdrew $11,000 for a vacation. 25 Paid the water bill for December, check #6295, $120. 25 Paid Brinks Co. on account, $2,500, check #6296. 26 Paid part time employees their salary, $3,600 27 Received cash on account from Larry Contractor, $700. Recorded cash sales for the store from the 16th to the 30th, $8,735. Cost of Merchandise Sold was 30 $2,784