The trial balance for Danbury Kite Shop as of December 31, 20-1, is shown.

Danbury Kite Shop

UNADJUSTED TRIAL BALANCE

December 31, 20--

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	33,600.00
2	Accounts Receivable	17,040.00
3	Merchandise Inventory	36,000.00
4	Estimated Returns Inventory	3,600.00
5	Supplies	1,920.00
6	Prepaid Insurance	4,320.00
7	Land	144,000.00
8	Building	480,000.00
9	Accumulated Depreciation-Building		72,000.00
10	Equipment	108,000.00
11	Accumulated Depreciation-Equipment		14,400.00
12	Accounts Payable		13,744.00
13	Customer Refunds Payable		5,000.00
14	Wages Payable
15	Sales Tax Payable		2,400.00
16	Unearned Repair Revenue		6,000.00
17	Note Payable		96,000.00
18	William Danbury, Capital		465,144.00
19	William Danbury, Drawing	25,932.00
20	Income Summary
21	Sales		449,400.00
22	Sales Returns and Allowances	15,360.00
23	Repair Revenue		1,440.00
24	Purchases	169,800.00
25	Purchases Returns and Allowances		2,160.00
26	Purchases Discounts		996.00
27	Freight-In	960.00
28	Wages Expense	78,000.00
29	Advertising Expense	972.00
30	Supplies Expense
31	Phone Expense	1,452.00
32	Utilities Expense	3,888.00
33	Insurance Expense
34	Depreciation Expense-Building
35	Depreciation Expense-Equipment
36	Interest Expense	3,840.00
37	Totals	1,128,684.00	1,128,684.00

At the end of the year, the following adjustments need to be made:

(a and b)	Merchandise inventory as of December 31, $37,920.
(c, d, e)	Bill Danbury estimates that customers will be granted $3,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of $2,160.
(f)	Unused supplies on hand, $420.
(g)	Insurance expired, $2,880.
(h)	Depreciation expense for the year on building, $24,000.
(i)	Depreciation expense for the year on equipment, $4,800.
(j)	Wages earned but not paid (Wages Payable), $624.
(k)	Unearned repair revenue on December 31, 20-1, $1,440.

Required:

1.	Prepare an end-of-period spreadsheet.
2.	Prepare adjusting entries and post adjusting entries to an Income Summary T account.
3.	Prepare closing entries and post to a Capital T account. There were no additional investments this year.
4.	Prepare a post-closing trial balance.
5.	Prepare reversing entry(ies).

CHART OF ACCOUNTS

Danbury Kite Shop

General Ledger

	ASSETS
101	Cash
122	Accounts Receivable
131	Merchandise Inventory
135	Estimated Returns Inventory
141	Supplies
145	Prepaid Insurance
161	Land
181	Building
181.1	Accumulated Depreciation-Building
182	Equipment
182.1	Accumulated Depreciation-Equipment

	LIABILITIES
202	Accounts Payable
203	Customer Refunds Payable
219	Wages Payable
231	Sales Tax Payable
241	Unearned Repair Revenue
242	Note Payable

	EQUITY
311	William Danbury, Capital
312	William Danbury, Drawing
313	Income Summary

	REVENUE
401	Sales
402	Sales Returns and Allowances
403	Repair Revenue

	EXPENSES
501	Purchases
501.1	Purchases Returns and Allowances
501.2	Purchases Discounts
502	Freight-In
511	Wages Expense
512	Advertising Expense
523	Supplies Expense
525	Phone Expense
533	Utilities Expense
535	Insurance Expense
542	Depreciation Expense-Building
543	Depreciation Expense-Equipment
549	Miscellaneous Expense
551	Interest Expense