The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of its fiscal year, are as follows:

Cash	$12,840
Accounts Receivable	3,242
Merchandise Inventory	137,757
Store Supplies	1,530
Prepaid Insurance	2,845
Land	22,000
Building	86,000
Accumulated Depreciation, Building	36,940
Store Equipment	54,952
Accumulated Depreciation, Store Equipment	13,348
Notes Payable	10,500
Accounts Payable	18,540
Sales Tax Payable	5,706
B. Markey, Capital	171,000
B. Markey, Drawing	52,000
Sales	458,905
Sales Returns and Allowances	7,590
Cost of Goods Sold	265,315
Salary Expense	52,973
Advertising Expense	6,288
Utilities Expense	7,355
Property Tax Expense	800
Miscellaneous Expense	775
Interest Expense	677

Data for the adjustments are as follows. Assume that Markey's Mountain Shop uses the perpetual inventory system.

a. Merchandise Inventory at December 31, $140,357. b. Store supplies inventory (on hand) at December 31, $540. c. Depreciation of building, $3,400. d. Depreciation of store equipment, $3,800. e. Salaries accrued at December 31, $1,250. f. Insurance expired during the year, $1,480.

Question Content Area

Required:

1. Complete the work sheet after entering the account names and balances onto the work sheet. If an amount is zero, enter "0".

Markey's Mountain Shop Work Sheet For Year Ended December 31, 20 - \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & \multirow[b]{2}{*}{ ACCOUNT NAME } & \multicolumn{2}{|c|}{ TRIAL BALANCE } & \multicolumn{2}{|c|}{ ADJUSTMENTS } & \multicolumn{2}{|c|}{ INCOME STATEMENT } & \multicolumn{2}{|c|}{ BALANCE SHEET } & \\ \hline & & DEBIT & CREDIT & DEBIT & CREDIT & DEBIT & CREDIT & DEBIT & CREDIT & \\ \hline 1 & |Cash & & & & & & & & & 1 \\ \hline 2 & Accounts Receivable & & & & & & & & & 2 \\ \hline 3 & Merchandise Inventory & & & & & & & & & 3 \\ \hline 4 & Store Supplies & & & & & & & & & 4 \\ \hline$ & Prepaid Insurance & & & & & & & & & 5 \\ \hline 6 & |Land & & & & & & & & & 6 \\ \hline 7 & Building & & & & & & & & & 7 \\ \hline 8 & |Accumulated Depreciation, Building & & & & & & & & & 8 \\ \hline 9 & Store Equipment & & & & & & & & & 9 \\ \hline 10 & Accumulated Depreciation, Store Equipment & & & & & & & & & 10 \\ \hline 11 & || Notes Payable & & & & & & & & & 11 \\ \hline 12 & Accounts Payable & & & & & & & & & 12 \\ \hline 13 & Sales Tax Payable & & & & & & & & & 13 \\ \hline 14 & B. Markey, Capital & & & & & & & & & 14 \\ \hline 15 & B. Markey, Drawing & & & & & & & & & 15 \\ \hline 16 & \begin{tabular}{||l|l|} Sales \\ \end{tabular} & & & & & & & & & 16 \\ \hline \end{tabular} 2. Journalize the adjusting entries on journal page 63 . Adjusting Entries c. 31 Cost of Goods Sold Merchandise Inventory Salaries Payable Sales Returns and Allowances Store Supplies Expense Accumulated Depreciation, Store Equipment Insurance Expense Merchandise Inventory Store Supplies Store Supplies Expense