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. COSES 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 year's sales next year and the merchandise expected to be returned will have a cost of $4,300. Supplies remaining at the end of the year, $3,300. Unexpired insurance on December 31, $3,800. Depreciation expense on the building for 20--, $12,500. (1) Depreciation expense on the store equipment for 20--, $5,000. Unearned rent revenue as of December 31, $4,500. (k) Wages earned but not paid as of December 31, $3,500. Required: 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 ADJUSTED TRIAL BALANCE ADJUSTMENTS DEBIT CREDIT ACCOUNT TITLE 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 Depreciation-Building 100,000 20,000 OD or 14,000 85,000 75,000 85,000 4,300 3,200 4,300 o 0 0 4,700 3,300 1,600 3,800 0 0 0 130,000 0 0 250,000 0 0 12,500 0 112,500 o 100,000 0 5, 000 0 45,000 00 9,600 2,200 5,700 3,500 3,500 ov 5,900 4,400 0 0 4,500 0 284,310 OD 26,000 1 0 Store Equipment 100,000 Accumulated Depreciation-Store Equipment 40,000 Accounts Payable 9,600 3,500 Customer Refunds Payable Wages Payable Sales Tax Payable 5,900 Unearned Rent Revenue 8,900 284,310 M. Young, Capital M. Young, Drawing 26,000 Income Summary 75,000 0 X 0 2,200 Sales 525,140 Sales Returns and allowances 14,500 Rent Revenue Purchases 125,000 0 0 Purchases Returns and Allowances 1, 4000 Purchases Discounts 1,800 0x 75,000 0x 0x 10x 0 525,140 16,700 4,400 4,400 0 125,000 0 0 1,400 0 1,800 0 2,100 0 128,500 0 0 13,000 4,700 1,350 0 8,000 ON 1,600 Freight-In 2,100 0 Wages Expense 125,000 Advertising Expense 13,000 3,500 o 4,700 Supplies Expense o Phone Expense 1,350 Utilities Expense 8,000 Insurance Expense 1,600 Depreciation Expense-Building 12,500 12,500 5,000 Depreciation Expense-Store Equipment 5,000 Miscellaneous Expense 60,000 60,000 980,550 980,550 0 x Net Income