aoshbet 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 $86,000 is on hand as of December 31, 20--- (c, d, e) Young estimates that customers will be granted $5,700 in refunds of this year's sales next year and the merchandise expected to be retumed will have a cost of $4,400. Supplies remaining at the end of the year, $3,300. Unexpired insurance on December 31, $3,900. Depreciation expense on the building for 20-, $11,000 (1) Depreciation expense on the store equipment for 20-, 39,000. 6) Unearned rent revenue as of December 31, $4,500 Wages eamed but not paid as of December 31, $3,500. Required: 1. Complete the Adjustments Columns 2. Complete the spreadsheet Venice Beach Kite Shop End-of-Period Spreadsheet For Year Ended December 20- TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE End-of-Perlod Spreadsheet TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT CREDIT DEBIT 0 Cash 20,000 20,000 0 0 14,000 14,000 75,000 86,000 75,000 86,000 Accounts Receivable Merchandise Inventory Estimated Returns Inventory Supplies Prepaid Insurance 3,100 4,400 3,100 4,400 0 8,100 3,300 4,800 5,300 1,400 3,900 0 Land 130,000 0 130,000 0 220,000 220,000 88,000 11,000 77,000 Building Accumulated Depreciation-Building Store Equipment Accumulated Depreciation-Store Equipment 0 180,000 180,000 0 72,000 63,000 9,000 0 9,600 9,600 0 Accounts Payable 0 2,300 5,700 3,400 Customer Refunds Payable 0 3,500 3,500 Wages Payable Sales Tax Payable 5,900 0 5,900 Uneamed Rent Revenue 8,900 4,500 4,400 M. Young, Capital 314,300 314,300 M. Young, Drawing 26,000 26,000 Income Summary 75,000 86,300 75,000 86,000 Sales 525,150 525,150 525,150 Sales Returns and Allowances 14,500 Rent Revenue Purchases 125,000 Purchases Returns and Allowances 1,400 Purchases Discounts 1,800 2,100 Freight-in Wages Expense Advertising Expense Supplies Expense 125,000 13,000 Phone Expense 1,350 Utilities Expense 8,000 Insurance Expense Depreciation Expense-Building Depreciation Expense-Store Equipment Miscellaneous Expense 60,000 1,030,450 1,030,450 Net Income 3. Enter the adjustments in a general journal. Page: DATE DOC. POST NO. REF. DEBIT CREDIT 1 20-- Dec. 31 ACCOUNT TITLE Income Summary Merchandise Inventory 75,000 1 2 75,000 2 3 3 4 36,000 4 Dec. 31 Merchandise Inventory Income Summary 5 86,000 5 6 6 7 Dec. 31 Sales Returns and Allowances 7 2.300 Customer Refunds Payable 2.300 8 8 9 9 10 Dec. 31 Income Summary 3,100 10 11 Estimated Returns Inventory 3,100 11 12 12 13 Dec. 31 Estimated Returns Inventory 4,400 13 14 Income Summary 4,400 14 15 15 16 Dec. 31 Supplies Expense 16 17 Supplies 17 18 18 19 Dec. 31 Insurance Expense 19 20 21 20 Prepaid Insurance 21 22 Dec. 31 Depreciation Expense-Building 23 Accumulated Depreciation-Building 22 II II II II II II II Il 23 24 24 25 Dec. 31 Depreciation Expense-Store Equipment 25 26 Accumulated Depreciation-Store Equipment 26 27 27 28 Dec. 31 Unearned Rent Revenue 28 29 29 Rent Revenue