Completion of a Work Sheet Showing a Net Loss

1. Complete the Adjustments columns.

2. Complete the work sheet.

3. Enter the adjustments in a general journal. If an amount box does not require an entry, leave it blank.

The trial balance for Cascade Bicycle Shop, a business owned by David Lamond, is shown below.

Cascade Bicycle Shop Trial Balance December 31, 20 --
ACCOUNT TITLE	DEBIT BALANCE	CREDIT BALANCE
Cash	23,105
Accounts Receivable	15,325
Merchandise Inventory	30,635
Supplies	7,000
Prepaid Insurance	4,665
Land	28,415
Building	49,750
Accumulated Depr.Building		16,000
Store Equipment	26,490
Accumulated Depr.Store Equip.		8,830
Accounts Payable		3,645
Wages Payable
Sales Tax Payable		2,845
Unearned Storage Revenue		5,530
Mortgage Payable		40,800
D. Lamond, Capital		165,000
D. Lamond, Drawing	32,795
Income Summary
Sales		51,240
Sales Returns and Allowances	2,565
Storage Revenue
Purchases	21,385
Purchases Returns and Allow.		1,245
Purchases Discounts		1,975
Freight-In	1,515
Wages Expense	35,480
Advertising Expense	5,780
Supplies Expense
Phone Expense	2,125
Utilities Expense	9,160
Insurance Expense
Depreciation ExpenseBuilding
Depreciation Exp.Store Equipment
Miscellaneous Expense	920
	297,110	297,110

Year-end adjustment information is as follows:

(a and b)

Merchandise inventory costing $21,815 is on hand as of December 31, 20--. (The periodic inventory system is used.)

(c)

Supplies remaining at the end of the year, $2,385.

(d)

Unexpired insurance on December 31, $1,745.

(e)

Depreciation expense on the building for 20--, $3,750.

(f)

Depreciation expense on the store equipment for 20--, $3,532.

(g)

Unearned storage revenue as of December 31, $1,905.

(h)

Wages earned but not paid as of December 31, $725.1. Complete the Adjustments columns.

2. Complete the work sheet.

If an amount box does not require an entry, leave it blank.

Cascade Bicycle Shop Work Sheet For Year Ended December 31, 20--
	TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	23105
Accounts Receivable	15325
Merchandise Inventory	30635
Supplies	7000
Prepaid Insurance	4665
Land	28415
Building	49750
Accumulated Depr.Building		16000
Store Equipment	26490
Accumulated Depr.Store Equip.		8830
Accounts Payable		3645
Wages Payable
Sales Tax Payable		2845
Unearned Storage Revenue		5530
Mortgage Payable		40800
D. Lamond, Capital		165000
D. Lamond, Drawing	32795
Income Summary
Sales		51240
Sales Returns and Allowances	2565
Storage Revenue
Purchases	21385
Purchases Returns and Allow.		1245
Purchases Discounts		1975
Freight-In	1515
Wages Expense	35480
Advertising Expense	5780
Supplies Expense
Phone Expense	2125
Utilities Expense	9160
Insurance Expense
Depreciation ExpenseBuilding
Depreciation Exp.Store Equip.
Miscellaneous Expense	920
	297110	297110
Net Loss