Question 7 J. Smith, Capital as of 12/31/0x is Selected Answer: D. 98,000 Answers: A. 122,300 B. 24,300 c. 116,300 D. 98,000 Question 8 Merchandise Inventory as of 1/1/0x is Selected Answer: A. 25,000 Answers: A. 25,000 B. 20,000 C. 45,000 D. 5,000 Question 9 Merchandise Inventory as of 12/31/0x is Selected Answer: A. 20,000 Answers: A. 20,000 B. 25,000 C. 45,000 D. 5,000 Adjustments Income Statement Trial Balance 45,000 90,000 20,000 3,000 7,000 40,000 Adjusted Trial 45,000 90,000 20,000 2,300 4,000 40,000 20,000 Balance Sheet 45,000 90,000 25,000 25,000 2,300 4,000 40,000 c.) 700 d.) 3,000 b.) 1,000 7,000 80,000 98,000 8,000 80,000 98,000 8,000 80,000 98,000 6,000 6,000 6,000 Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Rent Equipment Accumulated Depr., Equip. Accounts Payable J. Smith , Capital J. Smith, Withdrawals Sales Sales Returns & Allowances Sales Discounts Purchases Purchase Returns & Allowances Purchase Discounts Freight - In Selling& Admininstrative Exp. Freight - Out Salaries Expense 250,000 250,000 250,000 20,000 4,000 70,000 20,000 4,000 70,000 20,000 4,000 70,000 8,000 3,000 8,000 3,000 8,000 3,000 4,000 61,000 6,000 70,000 446,000 4,000 61,000 6,000 72,000 4,000 61,000 6,000 72,000 a.) 2,000 446,000 a.) 2,000 2,000 2,000 Salaries Payable Depreciation Expense, Equip. Supplies Expense Rent Expense b.) 1,000 c.) 700 d.) 3,000 6,700 1000 700 3,000 449,000 6,700 1000 700 3,000 261,700 24,300 286,000 449,000 286,000 212,300 Net Income 188,000 24,300 212,300 286,000 212,300