Question

Completion of a Work Sheet Showing a Net Loss 1. Complete the Adjustments columns. 2. Complete the work sheet. 3. Enter the adjustments in a general journal. If an amount box does not require an entry, leave it blank. The trial balance for Cascade Bicycle Shop, a business owned by David Lamond, is shown below. Cascade Bicycle Shop Trial Balance December 31, 20 ACCOUNT TITLE DEBIT BALANCE CREDIT BALANCE Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Land Building Accumulated Depr.-Building Store Equipment Accumulated Depr.-Store Equip. 22,895 14,640 31,390 7,475 4,505 28,130 51,440 16,520 27,450 9,150

Answer 1

1 & 2 .

Cascade Bicycle Shop Worksheet For the year ended December 31, 20...
Account Titles	Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	22,895	0	0	0	22,895	0	0	0	22,895	0
Accounts Receivable	14,640	0	0	0	14,640	0	0	0	14,640	0
Merchandise Inventory	31,390	0	0	0	31,390	0	31,390	21,950	21,950	0
Supplies	7,475	0	0	5,010	2,465	0	0	0	2,465	0
Prepaid Insurance	4,505	0	0	2,740	1,765	0	0	0	1,765	0
Land	28,130	0	0	0	28,130	0	0	0	28,130	0
Building	51,440	0	0	0	51,440	0	0	0	51,440	0
Accumulated Depreciation : Building	0	16,520	0	3,880	0	20,400	0	0	0	20,400
Store Equipment	27,450	0	0	0	27,450	0	0	0	27,450	0
Accumulated Depreciation : Store Equipment	0	9,150	0	3,660	0	12,810	0	0	0	12,810
Accounts Payable	0	3,530	0	0	0	3,530	0	0	0	3,530
Wages Payable	0	0	0	765	0	765	0	0	0	765
Sales Tax Payable	0	2,985	0	0	0	2,985	0	0	0	2,985
Unearned Storage Revenue	0	5,660	3,710	0	0	1,950	0	0	0	1,950
Mortgage Payable	0	43,400	0	0	0	43,400	0	0	0	43,400
D. Lamond, Capital	0	163,640	0	0	0	163,640	0	0	0	84,895
D. Lamond, Drawing	33,075	0	0	0	33,075	0	0	0	0	0
Income Summary
Sales	0	51,135	0	0	0	51,135	0	51,135	0	0
Sales Returns and Allowances	2,440	0	0	0	2,440	0	2,440	0	0	0
Storage Revenue	0	0	0	3,710	0	3,710	0	3,710
Purchases	20,865	0	0	0	20,865	0	20,865	0
Purchase Returns and Allowances	0	1,220	0	0	0	1,220	0	1,220
Purchase Discounts	0	1,910	0	0	0	1,910	0	1,910
Freight-in	1,525	0	0	0	1,525	0	1,525	0
Wages Expense	35,080	0	765	0	35,845	0	35,845	0
Advertising Expense	5,640	0	0	0	5,640	0	5,640	0
Supplies Expense	0	0	5,010	0	5,010	0	5,010	0
Phone Expense	2,475	0	0	0	2,475	0	2,475	0
Utilities Expense	9,245	0	0	0	9,245	0	9,245	0
Insurance Expense	0	0	2,740	0	2,740	0	2,740	0
Depreciation Expense: Building	0	0	3,880	0	3,880	0	3,880	0
Depreciation Expense : Store Equipment	0	0	3,660	0	3,660	0	3,660	0
Miscellaneous Expense	880	0	0	0	880	0	880	0
Totals	299,150	299,150	19,765	19,765			125,595	79,925	170,735	170,735
Total Expenses								(125,595)
Net Loss								(45,670)
D. Lamond, Drawings								(33,075)
D. Lamond, Capital, Beginning								163,640
D. Lamond, Capital, Ending								84,895

3. In the books of Cascade Bicycle Shop :

	Date	Account Titles	Debit	Credit
			$	$
a.	Dec 31	Merchandise Inventory ( Ending )	21,950
		Purchase		21,950
b.	Dec 31	Cost of Goods Sold	28,700
		Inventory		28,700
c.	Dec 31	Supplies Expense	5,010
		Supplies		5,010
d.	Dec 31	Insurance Expense	2,740
		Prepaid Insurance		2,740
e.	Dec 31	Depreciation Expense: Building	3,880
		Accumulated Depreciation : Building		3,880
f.	Dec 31	Depreciation Expense: Store Equipment	3,660
		Accumulated Depreciation : Store Equipment		3,660
g.	Dec 31	Unearned Storage Revenue	3,710
		Storage Revenue		3,710
h.	Dec 31	Wages Expense	765
		Wages Payable		765