This is all I was given. I just need help with how to post g-k to the year end statement Preparation of Adjustments on a
This is all I was given. I just need help with how to post g-k to the year end statement
Preparation of Adjustments on a Spreadsheet for a Merchandising Business: Periodic Method
The trial balance for the Venice Beach Kite Shop, a business owned by Molly Young is shown in the End-of-Period Spreadsheet.
Year-end adjustment information:
| (a, b) | A physical count shows that merchandise inventory costing $85,000 is on hand as of December 31, 20--. |
| (c, d, e) | Young estimates that customers will be granted $5,800 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of $4,400. |
| (f) | Supplies remaining at the end of the year, $3,200. |
| (g) | Unexpired insurance on December 31, $3,700. |
| (h) | Depreciation expense on the building for 20--, $11,500. |
| (i) | Depreciation expense on the store equipment for 20--, $7,500. |
| (j) | Unearned rent revenue as of December 31, $4,500. |
| (k) | Wages earned but not paid as of December 31, $3,600. |
Required:
1. Complete the Adjustments columns.
2. Complete the spreadsheet.
| Venice Beach Kite Shop End-of-Period Spreadsheet For Year Ended December 31, 20-- | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| TRIAL BALANCE | ADJUSTMENTS | ADJUSTED TRIAL BALANCE | ||||||||
| ACCOUNT TITLE | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | ||||
| Cash | 20,000 | |||||||||
| Accounts Receivable | 14,000 | |||||||||
| Merchandise Inventory | 75,000 | |||||||||
| Estimated Returns Inventory | 3,100 | |||||||||
| Supplies | 8,100 | |||||||||
| Prepaid Insurance | 5,300 | |||||||||
| Land | 130,000 | |||||||||
| Building | 230,000 | |||||||||
| Accumulated DepreciationBuilding | 92,000 | |||||||||
| Store Equipment | 150,000 | |||||||||
| Accumulated DepreciationStore Equipment | 60,000 | |||||||||
| Accounts Payable | 9,600 | |||||||||
| Customer Refunds Payable | 3,600 | |||||||||
| Wages Payable | ||||||||||
| Sales Tax Payable | 5,900 | |||||||||
| Unearned Rent Revenue | 8,900 | |||||||||
| M. Young, Capital | 302,200 | |||||||||
| M. Young, Drawing | 26,000 | |||||||||
| Income Summary | ||||||||||
| Sales | 525,150 | |||||||||
| Sales Returns and Allowances | 14,600 | |||||||||
| Rent Revenue | ||||||||||
| Purchases | 125,000 | |||||||||
| Purchases Returns and Allowances | 1,400 | |||||||||
| Purchases Discounts | 1,800 | |||||||||
| Freight-In | 2,100 | |||||||||
| Wages Expense | 125,000 | |||||||||
| Advertising Expense | 13,000 | |||||||||
| Supplies Expense | ||||||||||
| Phone Expense | 1,350 | |||||||||
| Utilities Expense | 8,000 | |||||||||
| Insurance Expense | ||||||||||
| Depreciation ExpenseBuilding | ||||||||||
| Depreciation ExpenseStore Equipment | ||||||||||
| Miscellaneous Expense | 60,000 | |||||||||
| 1,010,550 | 1,010,550 | |||||||||
| Net Income | ||||||||||
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Authors: Charles T. Horngren
3rd Edition
0131800345, 978-0131800342
