Preparation of Adjustments on a Spreadsheet for a Merchandising Business: Periodic Method

The trial balance for the Venice Beach Kite Shop, a business owned by Molly Young is shown in the End-of-Period Spreadsheet.

Year-end adjustment information:

(a, b)	A physical count shows that merchandise inventory costing $86,000 is on hand as of December 31, 20--.
(c, d, e)	Young estimates that customers will be granted $5,700 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of $4,300.
(f)	Supplies remaining at the end of the year, $3,200.
(g)	Unexpired insurance on December 31, $3,800.
(h)	Depreciation expense on the building for 20--, $10,000.
(i)	Depreciation expense on the store equipment for 20--, $5,000.
(j)	Unearned rent revenue as of December 31, $4,400.
(k)	Wages earned but not paid as of December 31, $3,500.

Required:

Question Content Area

1. Complete the Adjustments columns.

2. Complete the spreadsheet.

Venice Beach Kite Shop End-of-Period Spreadsheet For Year Ended December 31, 20--
	TRIAL BALANCE		ADJUSTMENTS				ADJUSTED TRIAL BALANCE
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT		CREDIT		DEBIT	CREDIT
Cash	20,000			fill in the blank 9376590b305afed_1		fill in the blank 9376590b305afed_2	fill in the blank 9376590b305afed_3	fill in the blank 9376590b305afed_4
Accounts Receivable	14,000			fill in the blank 9376590b305afed_5		fill in the blank 9376590b305afed_6	fill in the blank 9376590b305afed_7	fill in the blank 9376590b305afed_8
Merchandise Inventory	75,000			fill in the blank 9376590b305afed_9		fill in the blank 9376590b305afed_10	fill in the blank 9376590b305afed_11	fill in the blank 9376590b305afed_12
Estimated Returns Inventory	3,300			fill in the blank 9376590b305afed_13		fill in the blank 9376590b305afed_14	fill in the blank 9376590b305afed_15	fill in the blank 9376590b305afed_16
Supplies	8,000			fill in the blank 9376590b305afed_17		fill in the blank 9376590b305afed_18	fill in the blank 9376590b305afed_19	fill in the blank 9376590b305afed_20
Prepaid Insurance	5,300			fill in the blank 9376590b305afed_21		fill in the blank 9376590b305afed_22	fill in the blank 9376590b305afed_23	fill in the blank 9376590b305afed_24
Land	130,000			fill in the blank 9376590b305afed_25		fill in the blank 9376590b305afed_26	fill in the blank 9376590b305afed_27	fill in the blank 9376590b305afed_28
Building	200,000			fill in the blank 9376590b305afed_29		fill in the blank 9376590b305afed_30	fill in the blank 9376590b305afed_31	fill in the blank 9376590b305afed_32
Accumulated DepreciationBuilding		80,000		fill in the blank 9376590b305afed_33		fill in the blank 9376590b305afed_34	fill in the blank 9376590b305afed_35	fill in the blank 9376590b305afed_36
Store Equipment	100,000			fill in the blank 9376590b305afed_37		fill in the blank 9376590b305afed_38	fill in the blank 9376590b305afed_39	fill in the blank 9376590b305afed_40
Accumulated DepreciationStore Equipment		40,000		fill in the blank 9376590b305afed_41		fill in the blank 9376590b305afed_42	fill in the blank 9376590b305afed_43	fill in the blank 9376590b305afed_44
Accounts Payable		9,600		fill in the blank 9376590b305afed_45		fill in the blank 9376590b305afed_46	fill in the blank 9376590b305afed_47	fill in the blank 9376590b305afed_48
Customer Refunds Payable		3,500		fill in the blank 9376590b305afed_49		fill in the blank 9376590b305afed_50	fill in the blank 9376590b305afed_51	fill in the blank 9376590b305afed_52
Wages Payable				fill in the blank 9376590b305afed_53		fill in the blank 9376590b305afed_54	fill in the blank 9376590b305afed_55	fill in the blank 9376590b305afed_56
Sales Tax Payable		5,900		fill in the blank 9376590b305afed_57		fill in the blank 9376590b305afed_58	fill in the blank 9376590b305afed_59	fill in the blank 9376590b305afed_60
Unearned Rent Revenue		9,000		fill in the blank 9376590b305afed_61		fill in the blank 9376590b305afed_62	fill in the blank 9376590b305afed_63	fill in the blank 9376590b305afed_64
M. Young, Capital		254,120		fill in the blank 9376590b305afed_65		fill in the blank 9376590b305afed_66	fill in the blank 9376590b305afed_67	fill in the blank 9376590b305afed_68
M. Young, Drawing	26,000			fill in the blank 9376590b305afed_69		fill in the blank 9376590b305afed_70	fill in the blank 9376590b305afed_71	fill in the blank 9376590b305afed_72
Income Summary				fill in the blank 9376590b305afed_73		fill in the blank 9376590b305afed_74	fill in the blank 9376590b305afed_75	fill in the blank 9376590b305afed_76
				fill in the blank 9376590b305afed_77		fill in the blank 9376590b305afed_78	fill in the blank 9376590b305afed_79	fill in the blank 9376590b305afed_80
Sales		525,130		fill in the blank 9376590b305afed_81		fill in the blank 9376590b305afed_82	fill in the blank 9376590b305afed_83	fill in the blank 9376590b305afed_84
Sales Returns and Allowances	14,400			fill in the blank 9376590b305afed_85		fill in the blank 9376590b305afed_86	fill in the blank 9376590b305afed_87	fill in the blank 9376590b305afed_88
Rent Revenue				fill in the blank 9376590b305afed_89		fill in the blank 9376590b305afed_90	fill in the blank 9376590b305afed_91	fill in the blank 9376590b305afed_92
Purchases	125,000			fill in the blank 9376590b305afed_93		fill in the blank 9376590b305afed_94	fill in the blank 9376590b305afed_95	fill in the blank 9376590b305afed_96
Purchases Returns and Allowances		1,400		fill in the blank 9376590b305afed_97		fill in the blank 9376590b305afed_98	fill in the blank 9376590b305afed_99	fill in the blank 9376590b305afed_100
Purchases Discounts		1,800		fill in the blank 9376590b305afed_101		fill in the blank 9376590b305afed_102	fill in the blank 9376590b305afed_103	fill in the blank 9376590b305afed_104
Freight-In	2,100			fill in the blank 9376590b305afed_105		fill in the blank 9376590b305afed_106	fill in the blank 9376590b305afed_107	fill in the blank 9376590b305afed_108
Wages Expense	125,000			fill in the blank 9376590b305afed_109		fill in the blank 9376590b305afed_110	fill in the blank 9376590b305afed_111	fill in the blank 9376590b305afed_112
Advertising Expense	13,000			fill in the blank 9376590b305afed_113		fill in the blank 9376590b305afed_114	fill in the blank 9376590b305afed_115	fill in the blank 9376590b305afed_116
Supplies Expense				fill in the blank 9376590b305afed_117		fill in the blank 9376590b305afed_118	fill in the blank 9376590b305afed_119	fill in the blank 9376590b305afed_120
Phone Expense	1,350			fill in the blank 9376590b305afed_121		fill in the blank 9376590b305afed_122	fill in the blank 9376590b305afed_123	fill in the blank 9376590b305afed_124
Utilities Expense	8,000			fill in the blank 9376590b305afed_125		fill in the blank 9376590b305afed_126	fill in the blank 9376590b305afed_127	fill in the blank 9376590b305afed_128
Insurance Expense				fill in the blank 9376590b305afed_129		fill in the blank 9376590b305afed_130	fill in the blank 9376590b305afed_131	fill in the blank 9376590b305afed_132
Depreciation ExpenseBuilding				fill in the blank 9376590b305afed_133		fill in the blank 9376590b305afed_134	fill in the blank 9376590b305afed_135	fill in the blank 9376590b305afed_136
Depreciation ExpenseStore Equipment				fill in the blank 9376590b305afed_137		fill in the blank 9376590b305afed_138	fill in the blank 9376590b305afed_139	fill in the blank 9376590b305afed_140
Miscellaneous Expense	60,000			fill in the blank 9376590b305afed_141		fill in the blank 9376590b305afed_142	fill in the blank 9376590b305afed_143	fill in the blank 9376590b305afed_144
	930,450	930,450		fill in the blank 9376590b305afed_145		fill in the blank 9376590b305afed_146	fill in the blank 9376590b305afed_147	fill in the blank 9376590b305afed_148
							fill in the blank 9376590b305afed_149	fill in the blank 9376590b305afed_150
Net Income							fill in the blank 9376590b305afed_151

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