1. 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 $85,000 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, $3,300.
   (g)	Unexpired insurance on December 31, $3,800.
   (h)	Depreciation expense on the building for 20--, $12,500.
   (i)	Depreciation expense on the store equipment for 20--, $5,000.
   (j)	Unearned rent revenue as of December 31, $4,500.
   (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
   Accounts Receivable	14,000
   Merchandise Inventory	75,000
   Estimated Returns Inventory	3,200
   Supplies	8,000
   Prepaid Insurance	5,400
   Land	130,000
   Building	250,000
   Accumulated DepreciationBuilding		100,000
   Store Equipment	100,000
   Accumulated DepreciationStore Equipment		40,000
   Accounts Payable		9,600
   Customer Refunds Payable		3,500
   Wages Payable
   Sales Tax Payable		5,900
   Unearned Rent Revenue		8,900
   M. Young, Capital		284,310
   M. Young, Drawing	26,000
   Income Summary
   Sales		525,140
   Sales Returns and Allowances	14,500
   Rent Revenue
   Purchases	125,000
   Purchases Returns and Allowances		1,400
   Purchases Discounts		1,800
   Freight-In	2,100
   Wages Expense	125,000
   Advertising Expense	13,000
   Supplies Expense
   Phone Expense	1,350
   Utilities Expense	8,000
   Insurance Expense
   Depreciation ExpenseBuilding
   Depreciation ExpenseStore Equipment
   Miscellaneous Expense	60,000
   	980,550	980,550
   Net Income

   Question Content Area

   3. Enter the adjustments in a general journal.

   Page:

   	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
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