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Comprehensive Problem 2 TK's Farm Shop Directions on page 616 in textbook under the "Required. Start with "Required" #2, skipping #1 as you are using working papers. Working Pages #WP575 - WP596. During the second half of December 2021, TK's Farm Shop engaged in the following transactions: Dec. 16 Received payment from Lucy Greene on account, $1,760. 16 Sold merchandise on account to Kim Fields, $180, plus sales tax of $9. Sale No. 640. 17 Returned merchandise to Evans Essentials for credit, $170. 18 Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,340, less the credit received on December 17. 19 Sold merchandise on account to Lucy Greene, $650, plus tax of $36. Sale No. 641. 22 Received payment from John Dempsey on account, $1,560. 23 Issued Check No. 814 for the purchase of supplies, $180. (Debit Supplies) 24 Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $1,000. 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. $830. 27 Sold merchandise on account to John Dempsey, $2,500, plus tax of $120. Sale No. 642. 29 Received payment from Martha Boyle on account, $2,800. 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $2,400. 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $160. At the end of the year, the following adjustments (a)-(j) need to be made: (a, b) Merchandise inventory as of December 31, $21,300. (c, d, e) Ted estimates that customers will be granted $350 in refunds of this year's sales next year, and the merchandise expected to be returned will have a cost of $275. (f) Unused supplies on hand as of December 31, $615. Unexpired insurance on December 31, $1,150. (h) Depreciation expense on the building for the year $750. (i) Depreciation expense on the store equipment for the year, $375. (1) Wages earned but not yet paid as of December 31, $875. For working paper users and nonusers: 2. Enter transactions for the second half of December in the general journal. Post immediately to the accounts receivable and accounts payable ledgers. 3. Post from the journal to the general ledger 4. Prepare schedules of accounts receivable and accounts payable. 5. Prepare a year-end spreadsheet, an income statement, a statement of owner's equity, and a balance sheet. The mortgage payable includes $600 that is due within one year. 6. Journalize and post adjusting entries. 7. Journalize and post closing entries. (Hint: Close all expense and revenue account balances. Then, close Income Summary and Tom Jones, Drawing to Tom Jones, Capital.) 8. Prepare a post-closing trial balance. 9. Journalize and post reversing entries for the adjustments where appropriate, as of January 1, 20-2. Cash-debit 9,705.00 Accounts receivable-d: 10,256.00 Merchandise inventory-d: 21,800.00 Estimated Returns Inventory- d: 250.00 Supplies-d: 1,035.00 Prepaid Insurance d: 1,380.00 Land- d: 8,750.00 Building-d: 52,000.00 Accumulated Depr.-building - c: 9,200.00 Store Equipment-d: 28,750.00 Accum. Depr.-store equipment - C: 9,300.00 Accounts payable-c: 3,600.00 Customer refunds payable-c: 300.00 Wages payable- n/A Sales tax payable-c: 1,378.00 Mortgage payable-c: 12,525.00 Tom Jones, Capital- c: 90,000.00 Tom Jones, drawing-d: 8,500.00 Income summary-n/A Sales-c: 124,900.00 Sales returns & allowances-d: 1,430.00 1/3 Purchases-d: 64,400.00 Purchases and returns & allowances-c: 460.00 Purchase discounts-c: 698.00 Freight-In-d: 175.00 Wages expense-d: 26,100.00 Purchases- d: 64,400.00 Purchases and returns & allowances-c: 460.00 Purchase discounts-c: 698.00 Freight-In-d: 175.00 Wages expense-d: 26,100.00 Advertising expense-d: 4,700.00 Supplies expense- n/A Phone expense-d: 2,180.00 Utilities expense-d: 6,900.00 Insurance expense-n/A Depr. Expense-building-n/A Depr. Expense-store equipment- n/A Misc. Expense-d: 2,700.00 Interest expense-d: 1,350.00 Accounts receivable ledger Martha Boyle-balance 3,796.00 Anne Clark- balance 2,100.00 John Dempsy- balance 1,560.00 Kim Fields- balance n/A 2/3 Lucy Greene- balance 2,800.00 Evans Essemtials-balance 3,600.00 Nathen Co.- balance n/A Owen enterprises-balance n/A West wholesalers-barance n/A Comprehensive Problem 2 TK's Farm Shop Directions on page 616 in textbook under the "Required. Start with "Required" #2, skipping #1 as you are using working papers. Working Pages #WP575 - WP596. During the second half of December 2021, TK's Farm Shop engaged in the following transactions: Dec. 16 Received payment from Lucy Greene on account, $1,760. 16 Sold merchandise on account to Kim Fields, $180, plus sales tax of $9. Sale No. 640. 17 Returned merchandise to Evans Essentials for credit, $170. 18 Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,340, less the credit received on December 17. 19 Sold merchandise on account to Lucy Greene, $650, plus tax of $36. Sale No. 641. 22 Received payment from John Dempsey on account, $1,560. 23 Issued Check No. 814 for the purchase of supplies, $180. (Debit Supplies) 24 Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $1,000. 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. $830. 27 Sold merchandise on account to John Dempsey, $2,500, plus tax of $120. Sale No. 642. 29 Received payment from Martha Boyle on account, $2,800. 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $2,400. 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $160. At the end of the year, the following adjustments (a)-(j) need to be made: (a, b) Merchandise inventory as of December 31, $21,300. (c, d, e) Ted estimates that customers will be granted $350 in refunds of this year's sales next year, and the merchandise expected to be returned will have a cost of $275. (f) Unused supplies on hand as of December 31, $615. Unexpired insurance on December 31, $1,150. (h) Depreciation expense on the building for the year $750. (i) Depreciation expense on the store equipment for the year, $375. (1) Wages earned but not yet paid as of December 31, $875. For working paper users and nonusers: 2. Enter transactions for the second half of December in the general journal. Post immediately to the accounts receivable and accounts payable ledgers. 3. Post from the journal to the general ledger 4. Prepare schedules of accounts receivable and accounts payable. 5. Prepare a year-end spreadsheet, an income statement, a statement of owner's equity, and a balance sheet. The mortgage payable includes $600 that is due within one year. 6. Journalize and post adjusting entries. 7. Journalize and post closing entries. (Hint: Close all expense and revenue account balances. Then, close Income Summary and Tom Jones, Drawing to Tom Jones, Capital.) 8. Prepare a post-closing trial balance. 9. Journalize and post reversing entries for the adjustments where appropriate, as of January 1, 20-2. Cash-debit 9,705.00 Accounts receivable-d: 10,256.00 Merchandise inventory-d: 21,800.00 Estimated Returns Inventory- d: 250.00 Supplies-d: 1,035.00 Prepaid Insurance d: 1,380.00 Land- d: 8,750.00 Building-d: 52,000.00 Accumulated Depr.-building - c: 9,200.00 Store Equipment-d: 28,750.00 Accum. Depr.-store equipment - C: 9,300.00 Accounts payable-c: 3,600.00 Customer refunds payable-c: 300.00 Wages payable- n/A Sales tax payable-c: 1,378.00 Mortgage payable-c: 12,525.00 Tom Jones, Capital- c: 90,000.00 Tom Jones, drawing-d: 8,500.00 Income summary-n/A Sales-c: 124,900.00 Sales returns & allowances-d: 1,430.00 1/3 Purchases-d: 64,400.00 Purchases and returns & allowances-c: 460.00 Purchase discounts-c: 698.00 Freight-In-d: 175.00 Wages expense-d: 26,100.00 Purchases- d: 64,400.00 Purchases and returns & allowances-c: 460.00 Purchase discounts-c: 698.00 Freight-In-d: 175.00 Wages expense-d: 26,100.00 Advertising expense-d: 4,700.00 Supplies expense- n/A Phone expense-d: 2,180.00 Utilities expense-d: 6,900.00 Insurance expense-n/A Depr. Expense-building-n/A Depr. Expense-store equipment- n/A Misc. Expense-d: 2,700.00 Interest expense-d: 1,350.00 Accounts receivable ledger Martha Boyle-balance 3,796.00 Anne Clark- balance 2,100.00 John Dempsy- balance 1,560.00 Kim Fields- balance n/A 2/3 Lucy Greene- balance 2,800.00 Evans Essemtials-balance 3,600.00 Nathen Co.- balance n/A Owen enterprises-balance n/A West wholesalers-barance n/A