The trial balance and adjusted trial balance represented below were entered on the work sheet of Blue Grass Notes for the year ended December 31, 20--.
Work Sheet (partial) | |||||||
Trial Balance |
Adjusted Trial Balance | ||||||
Account Title | Debit | Credit | Debit | Credit | |||
Cash | 18,040 | 18,040 | |||||
Accounts Receivable | 4,400 | 4,400 | |||||
Merchandise Inventory | 42,600 | 40,400 | |||||
Supplies | 2,530 | 2,530 | |||||
Prepaid Insurance | 6,900 | 3,850 | |||||
Store Equipment | 118,800 | 118,800 | |||||
Accumulated Depreciation—Store Equipment | 46,530 | 64,130 | |||||
Building | 132,000 | 132,000 | |||||
Accumulated Depreciation—Building | 68,200 | 74,800 | |||||
Land | 69,000 | 69,000 | |||||
Accounts Payable | 8,280 | 8,280 | |||||
Sales Tax Payable | 1,320 | 1,320 | |||||
Wages Payable | 3,410 | ||||||
Mortgage Payable | 91,000 | 91,000 | |||||
Unearned Sales Revenue | 3,300 | 330 | |||||
Delta Tools, Capital | 132,000 | 132,000 | |||||
Delta Tools, Drawing | 26,400 | 26,400 | |||||
Income Summary | 42,600 | 40,400 | |||||
Sales | 250,800 | 253,770 | |||||
Delta Tools, Capital | 250,800 | 253,770 | |||||
Sales Returns and Allowances | 1,540 | 1,540 | |||||
Purchases | 105,960 | 105,960 | |||||
Purchases Returns and Allowances | 2,650 | 2,650 | |||||
Purchases Discounts | 10,230 | 10,230 | |||||
Freight-In | 1,320 | 1,320 | |||||
Wages Expense | 15,300 | 18,710 | |||||
Telephone Expense | 25,080 | 25,080 | |||||
Utilities Expense | 23,980 | 23,980 | |||||
Depreciation Expense—Store Equipment | 17,600 | ||||||
Depreciation Expense—Building | 6,600 | ||||||
Insurance Expense | 3,050 | ||||||
Advertising Expense | 15,180 | 15,180 | |||||
Miscellaneous Expense | 5,280 | 5,280 | |||||
614,310 | 614,310 | 682,320 | 682,320 |
1. Examine the trial balance and adjusted trial balance and prepare the year-end adjusting entries for Blue Grass Notes.
If an amount box does not require an entry, leave it blank.
DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
---|---|---|---|---|---|---|
1 | a. | 1 | ||||
2 | 2 | |||||
3 | 3 | |||||
4 | b. | 4 | ||||
5 | 5 | |||||
6 | 6 | |||||
7 | d. | 7 | ||||
8 | 8 | |||||
9 | 9 | |||||
10 | e. | 10 | ||||
11 | 11 | |||||
12 | 12 | |||||
13 | f. | 13 | ||||
14 | 14 | |||||
15 | 15 | |||||
16 | g. | 16 | ||||
17 | 17 | |||||
18 | 18 | |||||
19 | h. | 19 | ||||
20 | 20 |
2. Prepare the cost of goods sold section of the income statement for Blue Grass Notes for the year ended December 31, 20--.
Blue Grass Notes | ||||
Journal entries | ||||
Date | Account | Debit | Credit | Calculation |
a | Insurance Expense | $ 3,050 | =6,900-3,850 | |
Prepaid Insurance | $ 3,050 | |||
b | Depreciation Expense—Store Equipment | $ 17,600 | =64,130-46,530 | |
Accumulated Depreciation—Store Equipment | $ 17,600 | |||
c | Depreciation Expense—Building | $ 6,600 | =74,800-68,200 | |
Accumulated Depreciation—Building | $ 6,600 | |||
d | Wages Expense | $ 3,410 | ||
Wages Payable | $ 3,410 | |||
e | Unearned Sales Revenue | $ 2,970 | =3,300-330 | |
Sales | $ 2,970 | |||
f | Income Summary | $ 42,600 | ||
Merchandise Inventory | $ 42,600 | |||
(To adjust beginning inventory) | ||||
g | Merchandise Inventory | $ 40,400 | ||
Income Summary | $ 40,400 | |||
(To adjust ending inventory) |
The trial balance and adjusted trial balance represented below were entered on the work sheet of...