Required: MONTH END CLOSING AND ADJUSTMENTS 1. Post all items from the general journal as of March 31 to the general ledger if you have not already done so, and total each account. Label this total as "Balance" in each T-Account in the general ledger 2. Prepare an unadjusted trial balance of the general ledger, using the worksheet enclosed on pg. 33-34. 3. Record the period-end adjusting journal entries in the general journal on March 31 based on the following information: a. Ending inventory of office supplies is $180. b. Ending inventory of store supplies is $102. C. Expired insurance (see journal entry recorded on Mar 2). d. Depreciation expense, office furniture, $120. e. Depreciation expense, store equipment, $250. f. Depreciation expense, delivery equipment, $300. g. Accrued interest payable, $250. h. Accrued March utility expense to be paid in April, $92. 4. Post the period-end adjusting journal entries from Item 3 above to the general ledger, and total each account. Label this total as "Adjusted Balance". 5. Also post the period-end adjusting journal entries from Item 3 above to the worksheet on pg. 33-34 and complete the adjusted income statement and adjusted balance sheet columns. 6. Use the adjusted balances from the worksheet to prepare the following basic financial statements as of (or for the month ending) March 31: a. Multiple-Step Income Statement b. Statement of Changes in Retained Earnings C. Classified Balance Sheet 7. Journalize and post all closing journal entries to the general ledger, and total each account which is required to be closed. Label this total as "Closed Balance". Some accounts are not required to be closed, and therefore such accounts will not haveeed a "Closed Balance". (It is up to you to identify which accounts need to be closed at the end of each period.) Mar 1 Philip Yur-Karte contributes the following to start the business: Cash, $20,000; Merchandise Inventory (he has saved certain items up over the years), $34,000. Mr. Yur- Karte is the only stockholder and is issued 5,400 shares of $10 par common stock. Mar 1 Borrowed $25,000 from Ace Bank, on a one year, 12% note, with interest to be paid at maturity. Mar 1 Purchased an old oak desk (Office Furniture) from Top Spin Furniture Company, $7,200, cash. The useful life is five years. Mar 1 Paid first and last month's rent, $4,000 total (this amount covers two months rent), to Sampras Rent Co. (Note: only half of the amount should be expensed at this time. In this way, no adjusting entry will be required at the end of the month.) Mar 1 Purchased some Australian inventory on account from Barty and Co., $5,200, terms 2/10, N/30. Mar 1 As we open the doors, three customers walk in, all ready to spend money, and they do. We sell each of them merchandise on account: S. Williams, new racquets sold for $2,600. The cost of the merchandise was $1,040. M. Navratilova, two cases of tennis balls sold for $3,200. The cost of the merchandise was $1,280. S. Graf, ball machine sold for $1,500. The cost of the merchandise was $600. Mar 2 Paid for three months of insurance in advance, $4,200 to Drop Shot Insurance Company. Debit the entire amount to one account. Mar 3 Purchased store equipment (useful life is two years) on account from Net Play Company, $6,000, N/30. Mar 4 Purchased office supplies on account from Ad-Out Corporation, $820, N/30. Mar 5 Sold some merchandise on account to the following new customers: . V. Williams, not to be out-done by her sister, also purchased new racquets for $1,800. The cost of the merchandise was $720. A. Agassi, new tennis shoes sold for $1,250. The cost of the merchandise was $500. R. Nadal, one case of sweat bands, assorted colors, sold for $1,650. The cost of the merchandise was $660. . Mar 6 Received a check on account from S. Graf in payment of her Mar 1 invoice. (Reminder, all sales on account are made with terms 2/10, n/30. It will be up to you to determine whether or not payment is made within the discount period.) Mar 7 Recorded cash sales for the week, $5,130. The cost of the related merchandise sold was $2,052. Mar 8 Issued a credit memorandum to M. Navratilova for return of damaged merchandise, $1,400. Mar 8 Sold some merchandise on account to the following businesses: . Big Hitters, $4,200. The cost of the merchandise was $1,680 Open Strings, $6,800. The cost of the merchandise was $2,720 . Mar 9 Purchased delivery vehicle (Delivery Equipment with useful life of five years) with cash from Petrol People Movers, $18,000. Mar 10 Due to a power surge, all the bulbs in our store had to be replaced. Purchased store supplies from Bells & Bulbs, on account, $650, terms, n/30. Mar 10 Paid balance due to Barty and Co. for purchase made on March 1. Mar 12 Purchased some inventory on account from Game Set Match, $4,250, terms 2/10, n/30. Mar 12 Received payment from S. Williams on account. Mar 12 Sold some store supplies (at our cost) to the pharmacy next door. They paid us with a check for $125. Mar 13 Received credit memorandum from Game Set Match for damaged merchandise, $300. Mar 13 Sold merchandise on account to R. Federer, $3,200. The cost of the merchandise was $1,280. Required: MONTH END CLOSING AND ADJUSTMENTS 1. Post all items from the general journal as of March 31 to the general ledger if you have not already done so, and total each account. Label this total as "Balance" in each T-Account in the general ledger 2. Prepare an unadjusted trial balance of the general ledger, using the worksheet enclosed on pg. 33-34. 3. Record the period-end adjusting journal entries in the general journal on March 31 based on the following information: a. Ending inventory of office supplies is $180. b. Ending inventory of store supplies is $102. C. Expired insurance (see journal entry recorded on Mar 2). d. Depreciation expense, office furniture, $120. e. Depreciation expense, store equipment, $250. f. Depreciation expense, delivery equipment, $300. g. Accrued interest payable, $250. h. Accrued March utility expense to be paid in April, $92. 4. Post the period-end adjusting journal entries from Item 3 above to the general ledger, and total each account. Label this total as "Adjusted Balance". 5. Also post the period-end adjusting journal entries from Item 3 above to the worksheet on pg. 33-34 and complete the adjusted income statement and adjusted balance sheet columns. 6. Use the adjusted balances from the worksheet to prepare the following basic financial statements as of (or for the month ending) March 31: a. Multiple-Step Income Statement b. Statement of Changes in Retained Earnings C. Classified Balance Sheet 7. Journalize and post all closing journal entries to the general ledger, and total each account which is required to be closed. Label this total as "Closed Balance". Some accounts are not required to be closed, and therefore such accounts will not haveeed a "Closed Balance". (It is up to you to identify which accounts need to be closed at the end of each period.) Mar 1 Philip Yur-Karte contributes the following to start the business: Cash, $20,000; Merchandise Inventory (he has saved certain items up over the years), $34,000. Mr. Yur- Karte is the only stockholder and is issued 5,400 shares of $10 par common stock. Mar 1 Borrowed $25,000 from Ace Bank, on a one year, 12% note, with interest to be paid at maturity. Mar 1 Purchased an old oak desk (Office Furniture) from Top Spin Furniture Company, $7,200, cash. The useful life is five years. Mar 1 Paid first and last month's rent, $4,000 total (this amount covers two months rent), to Sampras Rent Co. (Note: only half of the amount should be expensed at this time. In this way, no adjusting entry will be required at the end of the month.) Mar 1 Purchased some Australian inventory on account from Barty and Co., $5,200, terms 2/10, N/30. Mar 1 As we open the doors, three customers walk in, all ready to spend money, and they do. We sell each of them merchandise on account: S. Williams, new racquets sold for $2,600. The cost of the merchandise was $1,040. M. Navratilova, two cases of tennis balls sold for $3,200. The cost of the merchandise was $1,280. S. Graf, ball machine sold for $1,500. The cost of the merchandise was $600. Mar 2 Paid for three months of insurance in advance, $4,200 to Drop Shot Insurance Company. Debit the entire amount to one account. Mar 3 Purchased store equipment (useful life is two years) on account from Net Play Company, $6,000, N/30. Mar 4 Purchased office supplies on account from Ad-Out Corporation, $820, N/30. Mar 5 Sold some merchandise on account to the following new customers: . V. Williams, not to be out-done by her sister, also purchased new racquets for $1,800. The cost of the merchandise was $720. A. Agassi, new tennis shoes sold for $1,250. The cost of the merchandise was $500. R. Nadal, one case of sweat bands, assorted colors, sold for $1,650. The cost of the merchandise was $660. . Mar 6 Received a check on account from S. Graf in payment of her Mar 1 invoice. (Reminder, all sales on account are made with terms 2/10, n/30. It will be up to you to determine whether or not payment is made within the discount period.) Mar 7 Recorded cash sales for the week, $5,130. The cost of the related merchandise sold was $2,052. Mar 8 Issued a credit memorandum to M. Navratilova for return of damaged merchandise, $1,400. Mar 8 Sold some merchandise on account to the following businesses: . Big Hitters, $4,200. The cost of the merchandise was $1,680 Open Strings, $6,800. The cost of the merchandise was $2,720 . Mar 9 Purchased delivery vehicle (Delivery Equipment with useful life of five years) with cash from Petrol People Movers, $18,000. Mar 10 Due to a power surge, all the bulbs in our store had to be replaced. Purchased store supplies from Bells & Bulbs, on account, $650, terms, n/30. Mar 10 Paid balance due to Barty and Co. for purchase made on March 1. Mar 12 Purchased some inventory on account from Game Set Match, $4,250, terms 2/10, n/30. Mar 12 Received payment from S. Williams on account. Mar 12 Sold some store supplies (at our cost) to the pharmacy next door. They paid us with a check for $125. Mar 13 Received credit memorandum from Game Set Match for damaged merchandise, $300. Mar 13 Sold merchandise on account to R. Federer, $3,200. The cost of the merchandise was $1,280