Question
Comprehensive Problem 2 TKs Farm Shop Complete the transactions for the second half of December 2022 for TKs Farm Shop. Use Working Pages WP575-596. On
Comprehensive Problem 2 TKs Farm Shop Complete the transactions for the second half of December 2022 for TKs Farm Shop. Use Working Pages WP575-596. On WP-581, change the owners name on account 311 and 312 from Tom Jones to Ted Kessler. Required: 1. Enter transactions for the second half of December in the general journal. Post immediately to the accounts receivable and accounts payable ledgers. 2. Post from the journal to the general ledger. 3. Prepare a schedule of accounts receivable and accounts payable on WP-589. 4. Prepare a year-end spreadsheet, an income statement, statement of owners equity and a balance sheet on WP-590 to WP-593. The mortgage payable incudes $400 that is due within the next year. 5. Journalize on WP-594 and post adjusting entries. Year-end adjustment information is found on the second page of these instructions after the December transactions. 6. Journalize on WP-594-595 and post-closing entries. 7. Prepare a post-closing trial balance on WP-596. 8. Journalize on WP-595 and post reversing entries for the adjustments where appropriate. During the second half of December 2022, TKs Farm Shop engaged in the following transactions: Dec. 16 Received payment from Lucy Greene on account, $2,160. 16 Sold merchandise on account to Kim Fields, $240, plus sales tax of $12. Sale No. 640. 17 Returned merchandise to Evans Essentials for credit, $190. 18 Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,800, less the credit received on December 17. 19 Sold merchandise on account to Lucy Greene, $450, plus tax of $25. Sale No. 641. 22 Received payment from John Dempsey on account, $1,560. 23 Issued Check No. 814 for the purchase of supplies, $240. (Debit Supplies) 24 Purchased merchandise on account from West Wholesalers, $1,650. Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $1,200. Invoice No. 817, dated December 26, terms 2/10, n/30. 27 Issued Check No. 815 in payment of utilities expense for the month of Dec. $750. 27 Sold merchandise on account to John Dempsey, $2,350, plus tax of $112. Sale No. 642. 29 Received payment from Martha Boyle on account, $2,500. 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $2,000. 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $140. At the end of the year, the following adjustments (a)-(j) need to be made: (a, b) Merchandise inventory as of December 31, $20,050. (c, d, e) Ted estimates that customers will be granted $320 in refunds of this years sales next year, and the merchandise expected to be returned will have a cost of $280. (f) Unused supplies on hand as of December 31, $575. (g) Unexpired insurance on December 31, $1,030. (h) Depreciation expense on the building for the year $650. (i) Depreciation expense on the store equipment for the year, $350. (j) Wages earned but not yet paid as of December 31, $400.
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