The unadjusted trial balance of Ben's Jewelers on December 31, 2019, the end of its fiscal year, appears below.

INSTRUCTIONS

1. Copy the unadjusted trial balance onto a worksheet and complete the worksheet using the following information:

a.-b. Ending merchandise inventory, $98,700.

c. Uncollectible accounts expense, $1,000.

d. Store supplies on hand December 31, 2019, $625.

e. Office supplies on hand December 31, 2019, $305.

f. Depreciation on store equipment, $11,360.

g. Depreciation on office equipment, $3,300.

h. Accrued sales salaries, $4,000, and accrued office salaries, $1,000.

i. Social security tax on accrued salaries, $326; Medicare tax on accrued salaries, $76. (Assumes that tax rates have increased.)

j. Federal unemployment tax on accrued salaries, $56; state unemployment tax on accrued salaries, $270.

2. Journalize the adjusting entries on page 30 of the general journal. Omit descriptions.

3. Journalize the closing entries on page 32 of the general journal. Omit descriptions.

4. Compute the following:

a. net sales

b. net delivered cost of purchases

c. cost of goods sold

d. net income or net loss

e. balance of Ben Waites, Capital on December 31, 2019.

Analyze:

What change(s) to Ben Waites, Capital will be reported on the statement of owner's equity?

Transcribed Image Text:

BEN'S JEWELERS Trial Balance December 31, 2019 S13,050 D Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Store Supplies Office Supplies Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable 49,900 Dr 2,000 Cr 105,900 Dr 4,230 Dr 2,950 Dr 13,590 Dr 13,010 Cr 27,640 Dr 4,930 C 4,390 Cr. Salaries Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Ben Waites, Capital Ben Waites, Drawing Income Summary Sales Sales Retuns and Allowances 66,310 Cr 30,000 Dr. Purchases Returns and Allowances Purchases Discounts Freight In Salaries Expense-Sales Rent Expense Advertising Expense Store Supplies Expense 862,230 Cr. 7,580 Dr. 504,810 Dr. 4,240 Cr. 0,770 Cr. 7,000 Dr. 75,950 Dr 35,500 Dr. 2,300 Dr Salaries Expense-Office Payroll Taxes Expense Uncollectible Accounts Expense Office Supplies Expense Depreciation Expense-Office Equipment 77,480 Dr.