CASE: CASE STUDY Suppose that the journal entries of a newly-established company are as follows: 1- The owner contributed 50.000 TL cash and 100.000 TL building to the company to start up a merchandising business. 2- The company opened a term deposit of 20.000 TL in a bank account. 3- The company purchased 5.000 TL of office supplies and 10.000 TL of equipment in cash. 4 The company imported 12.000 TL of goods on account to sell them in the local market. 5- The company sold half of the goods at a price of 8.000 TL on account. The company employs perpetual inventory system. 6- The company returned 2.000 TL of the goods to the importer due to low standards. 7- A customer returned 4.000 TL of the goods since they were damaged. 8- The company paid 5.000 TL salaries. 9- The company received 4.000 TL from its customers in (5). 10- The owner withdrew 2.000 TL from the company. Adjusting entries, however, are listed below: 1- The company paid 1.000 TL for an insurance fee of the next year. 2- Office supplies are counted as 2.000 TL. 3- The interest on the term deposit is accrued as 2.000 TL, but not payable. 4- Depreciation on equipment is calculated over a 10 years useful life with straight-line method., while depreciation on building is calculated over a 20 years useful life with accelerated method. 5- The company paid half of its payables. INSTRUCTIONS Q1: Make all journal entries including adjusting entries and closing entries (36 points) Q2: Complete the following table with respect to the journal entries you have made. (50 points) Cash TRIAL BALANCE DEBIT CREDIT ADJUSTING ENTRIES DEBIT CREDIT ADJUSTED TRIAL BALANCE DEBIT INCOME STATEMENT BALANCE SHEET CREDIT DEBIT CREDIT DEBIT CREDIT Q3: Prepare an income statement and balance sheet for the end of the period. (14 points)