ne: ID: B 13. The trial balance for December 31, 20- has been entered below on t
ID: 2332999 • Letter: N
Question
ne: ID: B 13. The trial balance for December 31, 20- has been entered below on the partial work sheet for Camping Supply Center Required: Complete the Adjustments columns using the following year-end adjustments information Identify each adjustment with its corresponding letter a./b. Based on a physical count, it was determined that merchandise inventory costing $21,700 is on hand as of December 31, 20- c. Supplies remaining at the end of the year, $6,300 d. Unexpired insurance on hand at the end of the year, $2,200. e. Depreciation expense on the store equipment, $2,500. f. Depreciation expense on the building, $2,700 g Unearned Rental Revenue as of December 31, S3,200 Wages earned but not yet paid, $660 2. Complete the Adjusted Trial Balance columns of the work sheet. 3. Journalize the adjusting entries 15Explanation / Answer
Answers
Trial Balance
Adjustments
Adjusted Trial balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 38,400.00
$ 38,400.00
Accounts receivables
$ 10,200.00
$ 10,200.00
Merchandise Inventory
$ 30,720.00
$ 21,700.00
$ 30,720.00
$ 21,700.00
Supplies
$ 8,520.00
$ 2,220.00
$ 6,300.00
Prepaid Insurance
$ 5,760.00
$ 3,560.00
$ 2,200.00
Store Equipment
$ 25,560.00
$ 25,560.00
Accumulated Depreciation Store Equipment
$ 8,520.00
$ 2,500.00
$ 11,020.00
Building
$ 60,000.00
$ 60,000.00
Accumulated Dep - Building
$ 12,000.00
$ 2,700.00
$ 14,700.00
Land
$ 54,000.00
$ 54,000.00
Accounts payable
$ 6,720.00
$ 6,720.00
Wages payable
$ 660.00
$ 660.00
Sales Tax payable
$ 5,040.00
$ 5,040.00
Mortgage payable
$ 86,400.00
$ 86,400.00
Uneanred rental revenue
$ 7,500.00
$ 4,300.00
$ 3,200.00
Willi Kaplin Capital
$ 109,800.00
$ 109,800.00
Willie Kaplin Drawings
$ 28,560.00
$ 28,560.00
Income Summary
$ 30,720.00
$ 21,700.00
$ 9,020.00
Sales
$ 118,440.00
$ 118,440.00
Sales returns & Allowances
$ 2,952.00
$ 2,952.00
Earned Rental revenue
$ 4,300.00
$ 4,300.00
Purchases
$ 37,920.00
$ 37,920.00
purchases return & Allowances
$ 5,064.00
$ 5,064.00
Wages Expense
$ 45,120.00
$ 660.00
$ 45,780.00
Telephone expense
$ 2,112.00
$ 2,112.00
Supplies expense
$ 2,220.00
$ 2,220.00
Insurance expense
$ 3,560.00
$ 3,560.00
Utilities expense
$ 9,660.00
$ 9,660.00
Depreciation Expense - Store Equipment
$ 2,500.00
$ 2,500.00
Depreciation Expense - Building
$ 2,700.00
$ 2,700.00
TOTAL
$ 359,484.00
$ 359,484.00
$ 68,360.00
$ 68,360.00
$ 365,344.00
$ 365,344.00
Adjustment no.
Accounts title
Debit
Credit
Working
a.
Income Summary
$ 30,720.00
[beginning balance of inventory]
Merchandise Inventory
$ 30,720.00
[beginning balance of inventory]
(Beginning balance transferred)
b.
Merchandise Inventory
$ 21,700.00
[Ending balance of inventory as per count]
Income Summary
$ 21,700.00
(Balance as per phsycial count recorded)
c.
Supplies expense
$ 2,220.00
[Beginning bal - Ending balance]
Supplies
$ 2,220.00
[8520 - 6300]
(Supplies consumed)
d.
Insurance Expense
$ 3,560.00
[Prepaid balance - Unexpired balance]
Prepaid Insurance
$ 3,560.00
[5760 - 2200]
(Insurance expired)
e.
Depreciation Expense - Store Equipment
$ 2,500.00
Accumulated Depreciation Store Equipment
$ 2,500.00
(Depreciation recorded)
f.
Depreciation Expense - Building
$ 2,700.00
Accumulated Dep - Building
$ 2,700.00
(Depreciation recorded)
g.
Uneanred rental revenue
$ 4,300.00
[beginning balance - ending bal]
Earned Rental revenue
$ 4,300.00
[7500 - 3200]
(revenue earned that was earlier unearned)
h.
Wages Expense
$ 660.00
Wages payable
$ 660.00
(Wages expense accrued)
Trial Balance
Adjustments
Adjusted Trial balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 38,400.00
$ 38,400.00
Accounts receivables
$ 10,200.00
$ 10,200.00
Merchandise Inventory
$ 30,720.00
$ 21,700.00
$ 30,720.00
$ 21,700.00
Supplies
$ 8,520.00
$ 2,220.00
$ 6,300.00
Prepaid Insurance
$ 5,760.00
$ 3,560.00
$ 2,200.00
Store Equipment
$ 25,560.00
$ 25,560.00
Accumulated Depreciation Store Equipment
$ 8,520.00
$ 2,500.00
$ 11,020.00
Building
$ 60,000.00
$ 60,000.00
Accumulated Dep - Building
$ 12,000.00
$ 2,700.00
$ 14,700.00
Land
$ 54,000.00
$ 54,000.00
Accounts payable
$ 6,720.00
$ 6,720.00
Wages payable
$ 660.00
$ 660.00
Sales Tax payable
$ 5,040.00
$ 5,040.00
Mortgage payable
$ 86,400.00
$ 86,400.00
Uneanred rental revenue
$ 7,500.00
$ 4,300.00
$ 3,200.00
Willi Kaplin Capital
$ 109,800.00
$ 109,800.00
Willie Kaplin Drawings
$ 28,560.00
$ 28,560.00
Income Summary
$ 30,720.00
$ 21,700.00
$ 9,020.00
Sales
$ 118,440.00
$ 118,440.00
Sales returns & Allowances
$ 2,952.00
$ 2,952.00
Earned Rental revenue
$ 4,300.00
$ 4,300.00
Purchases
$ 37,920.00
$ 37,920.00
purchases return & Allowances
$ 5,064.00
$ 5,064.00
Wages Expense
$ 45,120.00
$ 660.00
$ 45,780.00
Telephone expense
$ 2,112.00
$ 2,112.00
Supplies expense
$ 2,220.00
$ 2,220.00
Insurance expense
$ 3,560.00
$ 3,560.00
Utilities expense
$ 9,660.00
$ 9,660.00
Depreciation Expense - Store Equipment
$ 2,500.00
$ 2,500.00
Depreciation Expense - Building
$ 2,700.00
$ 2,700.00
TOTAL
$ 359,484.00
$ 359,484.00
$ 68,360.00
$ 68,360.00
$ 365,344.00
$ 365,344.00
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