Question
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
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.
Cash | $ | 33,651 | |
Accounts Receivable | 530 | ||
Prepaid Advertising | 660 | ||
Supplies | 330 | ||
Merchandise Inventory | 15,300 | ||
Store Equipment | 25,300 | ||
Accumulated DepreciationStore Equipment | 3,300 | ||
Office Equipment | 5,300 | ||
Accumulated DepreciationOffice Equipment | 1,650 | ||
Notes Payable, due 20X2 | 23,000 | ||
Accounts Payable | 2,735 | ||
Wages Payable | |||
Social Security Tax Payable | |||
Medicare Tax Payable | |||
Unearned Seminar Fees | 7,800 | ||
Interest Payable | |||
Vincent Carbone, Capital | 33,000 | ||
Vincent Carbone, Drawing | 14,410 | ||
Income Summary | |||
Sales | 155,470 | ||
Sales Discounts | 230 | ||
Seminar Fee Income | |||
Purchases | 91,300 | ||
Purchases Returns and Allowances | 1,300 | ||
Freight In | 240 | ||
Rent Expense | 13,500 | ||
Wages Expense | 24,000 | ||
Payroll Taxes Expense | 3,324 | ||
Depreciation ExpenseStore Equipment | |||
Depreciation ExpenseOffice Equipment | |||
Advertising Expense | |||
Supplies Expense | |||
Interest Expense | 180 | ||
ADJUSTMENTS:
a.b. Merchandise inventory at December 31, 20X1, was counted and determined to be $12,300.
The amount recorded as prepaid advertising represents $660 paid on September 1, 20X1, for 12 months of advertising.
The amount of supplies on hand at December 31 was $115.
Depreciation on store equipment was $3,200 for 20X1.
Depreciation on office equipment was $1,075 for 20X1.
Unearned Seminar Fees represent $7,800 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.
Required:
Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1.
Enter the adjustments above in the Adjustments section of the worksheet.
Complete the worksheet.
Analyze: What was the amount of revenue earned by conducting seminars during the year ended December 31, 20X1?
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