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Vintage Wines is a retail store selling fine wines. On December 31, 20X1, the firm's general ledger contained the account balances below. All account
Vintage Wines is a retail store selling fine wines. On December 31, 20X1, the firm's general ledger contained the account balances below. All account balances are normal. Cash Accounts Receivable $ 28,886 1,500 Prepaid Advertising 480 Supplies 300 Merchandise Inventory 45,000 Store Equipment 28,000 Accumulated Depreciation-store Equipment 3,000 Office Equipment 6,000 Accumulated Depreciation-Office Equipment 1,500 Notes Payable, due 20x2 18,000 Accounts Payable 36,705 Wages Payable Social Security Tax Payable Medicare Tax Payable Unearned Seminar Fees Interest Payable Anthony Ponte, Capital Anthony Ponte, Drawing Income Summary Sales 8,000 32,700 14,110 254,970 200 Sales Discounts Seminar Fee Income Purchases 191,000 Purchases Returns and Allowances 1,500 Freight In 225 Rent Expense 13,200 Wages Expense 24,000 Payroll Taxes Expense 3,324 Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Advertising Expense Supplies Expense Interest Expense ADJUSTMENTS 150 a.-b. Merchandise Inventory at December 31, 20X1, was counted and determined to be $44,200. c. The amount recorded as prepaid advertising represents $480 paid on September 1, 20X1, for 12 months of advertising. d. The amount of supplies on hand at December 31 was $145. e. Depreciation on store equipment was $4,000 for 20X1. f. Depreciation on office equipment was $1,250 for 20X1. g. Unearned Seminar Fees represent $8,000 received on November 1, 20X1, for five seminars. At December 31, three of these seminars had been conducted. h. Wages owed but not paid at December 31 were $1,000. 1. On December 31, 20X1, the firm owed the employer's social security tax ($62.00) and Medicare tax ($14.50). J. The note payable bears Interest at 5 percent per annum. Two months of Interest is owed at December 31, 20X1. Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1. 2. Enter the adjustments above in the Adjustments section of the worksheet
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