Preparing Adjusting Entries, Financial Statements, and Closing Entries Fischer Card Shop is a small retail shop. Fischer's balance sheet at year-end 2018 is as follows. The following information details transactions and adjustments that occurred during 2019 1. Sales total $145.850 in 2019: all sales were cash sales 2. Inventory purchases total 576,200 in 2019 at December 31, 2019. inventory totals $14.500. Assume all purchases are made on account 3. Accounts payable totals $4,100 at December 31, 2019 4. Annual store rent for $24,000 and was paid on March 1, 2019, covering the next 12 months. The balance in prepaid rent at December 31, 2018, was the balance remaining from the advance rent payment in 2018 5. Wages are paid every other week on Friday, during 2019. Fischer paid 512.500 cash for wages. At December 31, 2019. Bucher owed employees unpaid and unrecorded wages of $350 6. Depreciation on equipment totals $1,700 in 2019. Fischer Card Shop Balance Sheet December 31, 2018 $8.500 Accounts payable 55.300 12.000 Waste Prepaid 24000 Toalety includes retained and 23.500 Equipment Toate and Les Accumulated pro 3.000 Equipment et Cash Invento 100 5.100 2100 Total current To current 57,500 $2.000 500 Tocats 2100 (a) Prepare any necessary transaction entries for 2019 and adjusting entries at December 31, 2019, using the financial statement effects template. (b) Prepare any necessary transaction entries for 2019 and adjusting entries at December 31, 2019. in journal entry form. (c) Set up T-accounts, including beginning balances, and post the journal entries to those accounts on the appropriate line. After all transactions are recorded, compute the balance for each account in the appropriate column (d) Prepare its income statement for 2019, and its balance sheet at December 31, 2019. tel Prepare entries to close its temporary accounts in journal entry form and post the closing entries to the accounts above in part (0) Financial Statement Effects Template Financial Statements Note: Use negative sens with your answers, when appropriate Balance Sheet Noncash Contra Transaction Cash Asset. Assets Assets - abilities Income Statement Contributed Capital Lamed Revenue tapenses - Nu income 651 161 Total Check Financial Statement Effects Template Financial Statements Note: Do not use negative signs with any of your answers in the finan Fischer Card Shop Income Statement For the Year Ended December 31, 2019 $ ZA Gross profit Other expenses: Rent Expense Wages Expense Depreciation Expense Total other expenses Net income $ Fischer Card Shop Balance Sheet 2019 2018 Assets: $ Inventories Prepaid rent Total current assets Less: Accumulated depreciation Equ ment, net Total assets Liabilities and equity. Wages payable Total liabilities Total equity Total liabilities and equity $ $ Check
