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Question: Continuing Problem: Worksheet 2 Scenario: This problem is an adaptation of the Wholesale Workers ...

Continuing Problem: Worksheet 2 Scenario: This problem is an adaptation of the Wholesale Workers Company problem from WORKSHEET 1. You can use your work from WORKSHEET 1 to assist you. Here, we are to assume that Wholesale Workers Company is a merchandising company and sells merchandise inventory. Consequently, Wholesale Workers Company now has the asset Inventory and will have Sales revenue rather than service revenue. The accounts and balances (after closing) at the end of their fiscal year March 31, 2016 are now as follows (the accounts that are changed/new from previous worksheet are underlined): Cash $14,000, Accounts Receivable $46,000, Inventory $65,000, Supplies $6,000, Equipment $230,000, Accumulated Depreciation $45,000, Accounts Payable $28,000, Wages Payable $1,600, Common Stock $40,000 and Retained Earnings $246,400.

Use the T-accounts below and include the appropriate beginning balances.

	Cash			Accounts Receivable				Inventory
	Supplies			Equipment				Accumulated Depreciation
	Accounts Payable			Wages Payable
				Common Stock				Retained Earnings
	Sales Revenue			Cost of Goods Sold				Wage Expense
	Supplies Expense			Depreciation Expense				Other Expenses

Write the journal entries for the transactions below. Some of these transactions are unchanged from Worksheet 1 scenario. Use your work there as a resource.

Inventory Merchandise was purchased on account during the year for $480,000. Because they are selling merchandise, they must purchase it before they sell the product. Inventory is any item purchased with the intent to resell it. Items purchased to be used in the day to day operation of the business (not resold to customers) are classified as Supplies, if they will be used in the short termone year or less, and Equipment if it will be used over multiple years.

The company sold $500,000 of merchandise inventory for $840,000 to customers on account. Write 2 journal entries1 to recognize the revenue1 to recognize the expense. Because the company is a merchandiser, they now have Cost of Goods Sold as an expense.

Supplies in the amount of $18,000 were purchased during the year. Supplies ae different than inventory as supplies represent items the company intends to use within the business while inventory are items the company intends to resell.

Cash was collected from customers on account in the amount of $848,000 during the year.

Wholesale Workers Company paid their employees $125,000 for work performed during the year. The amount paid to employees has been reduced from the Scenario in Worksheet 1 to represent the fewer employees utilized by merchandising companies than service companies. Of the $125,000, $1,600 of the payment relates to work performed in the previous year. (Wages Payable).

Other operating expenses in the amount of $155,000 were incurred on account during the year.

Payments on account where made during the year totally $660,000. This amount has increased from the Scenario in Worksheet 1 because merchandising companies pay their suppliers for inventory purchased. Service companies do not.

An adjusting entry was made at year end, March 31, 2017 to recognize depreciation expense in the amount of $26,000.

An adjusting entry was made at year end to recognize $14,000 of supplies used.

A year end adjustment was made to accrue $2,200 of unpaid wages.

Determine the ending balances for Wholesale Workers Company as of March 31, 2017.