Problem 12.6A (Algo) Recording adjustments and completing the worksheet. LO 12-1, 12-2, 12-3, 12-4 The Artisan Wines is a retail store selling vintage wines. On
Problem 12.6A (Algo) Recording adjustments and completing the worksheet. LO 12-1, 12-2, 12-3, 12-4
The Artisan Wines is a retail store selling vintage wines. On December 31, 20X1, the firms general ledger contained the accounts and balances below. All account balances are normal.
Merchandise inventory at December 31, 20X1, was counted and determined to be $11,500.
- The amount recorded as prepaid advertising represents $780 paid on September 1, 20X1, for 12 months of advertising.
- The amount of supplies on hand at December 31 was $75.
- Depreciation on store equipment was $3,000 for 20X1.
- Depreciation on office equipment was $875 for 20X1.
- Unearned Seminar Fees represent $9,000 received on November 1, 20X1, for six seminars. At December 31, four of these seminars had been conducted.
- Wages owed but not paid at December 31 were $500.
- On December 31, 20X1, the firm owed the employers social security tax ($31.00) and Medicare tax ($7.25).
- The note payable bears interest at 6 percent per annum. One months interest is owed at December 31, 20X1.
The Artisan Wines is a retail store selling vintage wines. On December 31, 20X1, the firm's general ledger contained the accounts and balances below. All account balances are normal. $ 25,911 450 780 25e 14,500 24,500 2,500 4,500 1,250 15, eee 2,655 9, see Cash Accounts Receivable Prepaid Advertising Supplies Merchandise Inventory Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation-office Equipment Notes Payable, due 20x2 Accounts Payable Wages Payable Social Security Tax Payable Medicare Tax Payable Unearned Seminar Fees Interest Payable Vincent Carbone, Capital Vincent Carbone, Drawing Income Summary Sales Sales Discounts Seminar Fee Income Purchases Purchases Returns and Allowances Freight In Rent Expense Wages Expense Payroll Taxes Expense Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Advertising Expense Supplies Expense Interest Expense 32,200 13,610 151,470 150 90,500 1,5ee 200 12,700 24,000 3,324 200 ADJUSTMENTS: a.-b. Merchandise Inventory at December 31, 20x1, was counted and determined to be $11,500. c. The amount recorded as prepaid advertising represents $780 paid on September 1, 20x1, for 12 months of advertising. d. The amount of supplies on hand at December 31 was $75. e. Depreciation on store equipment was $3,000 for 20X1. t. Depreciation on office equipment was $875 for 20X1. g. Unearned Seminar Fees represent $9,000 received on November 1, 20x1, for six seminars. At December 31, four of these seminars had been conducted. h. Wages owed but not paid at December 31 were $500. 1. On December 31, 20X1, the firm owed the employer's social security tax ($31.00) and Medicare tax ($7.25). J. The note payable bears Interest at 6 percent per annum. One months Interest is owed at December 31, 20X1. Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1. 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. Complete the worksheet. Artisan Wines Worksheet Year Ended December 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Income Statement Balance Sheet Debit Credit Account Name Debit Credit Cash Trial Balance Debit Credit $ 25,911.00 450.00 780.00 250.00 Accounts Receivable 14,500.00 24,500.00 2,500.00 4,500.00 Prepaid Advertising Supplies Merchandise Inventory Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation Office Equipment Notes Payable, due 20X2 Accounts Payable Wages Payable Social Security Tax Payable Medicare Tax Payable Unearned Seminar Fees 1.250.00 15,000.00 2.655.00 9.000.00 Interest Payable Vincent Arroyo, Capital 32,200.00 13.810.00 Vincent Arroyo, Drawing Income Summary Sales Sales Discounts Seminar Fee Income 151.470.00 150.00 90,500.00 Purchases Purchases Returns and Allowances 1.500.00 200.00 12.700.00 24.000.00 3.324.00 Freight in Rent Expense Wages Expense Payroll Taxes Expense Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Advertising Expense Supplies Expense Interest Expense S Totals s 215.375.00 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 215,575.00 $ 0.00 $ Net Income 5 0.00 $ 0.00 $ 0.00 $ 0.00 ADJUSTMENTS: a.-b. Merchandise inventory at December 31, 20X1, was counted and determined to be $11,500. c. The amount recorded as prepaid advertising represents $780 paid on September 1, 20X1, for 12 months of advertising. d. The amount of supplies on hand at December 31 was $75. e. Depreciation on store equipment was $3,000 for 20x1. f. Depreciation on office equipment was $875 for 20X1. g. Unearned Seminar Fees represent $9,000 received on November 1, 20x1, for six seminars. At December 31, four of these seminars had been conducted. h. Wages owed but not paid at December 31 were $500. i. On December 31, 20X1, the firm owed the employer's social security tax ($31.00) and Medicare tax ($7.25). j. The note payable bears interest at 6 percent per annum. One months interest is owed at December 31, 20X1. Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1. 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. Complete the worksheet. Analyze: What was the amount of revenue earned by conducting seminars during the year ended December 31, 20X1? Complete this question by entering your answers in the tabs below. Worksheet Analyze What was the amount of revenue earned by conducting seminars during the year ended December 31, 20X1? Revenue earned, Dec 31, 20X1
