Question

From the following trial balance and additional data, complete a worksheet for -2 Jim's Hardware: Additional Data L01,2 (60 min) count of inventory on December 31, $615 a. Physical bInsurance expired, $150 Depreciation expense on store equipment, $60 C. d. Accrued wages, $90 JIM'S HARDWARE TRIAL BALANCE DECEMBER 31, 2018 Figure 11.11 Trial Balance for Jim's Hardware Dr. Cash Cr. 78600 115200 60000 68400 216000 Accounts Receivable Merchandise Inventory Prepaid Insurance Store Equipment Accumulated Depreciation, Store Equipment Check Figure: Net Income $2,289 660 00 Accounts Payable 51600 163200 11 04000 im Spool Capital Sales Sales Returns and Allowances 546 00 21600 498600 171600 79200 Sales Discounts Cost of Goods Sold Wages Expense Rent Expense Telephone Expense Miscellaneous Expense LO1,2 1 1400 9600 13 848 00 13 84 8 00

Answer 1

The worksheet for Jim's Hardware is shown as follows:- (Amounts in $)

Jim's Hardware
Worksheet for year ending Dec 31, 2018
	Trial balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	786				786				786
Accounts receivable	1,152				1,152				1,152
Merchandise Inventory	600		15		615				615
Prepaid Insurance	684			150	534				534
Store Equipment	2,160				2,160				2,160
Acc. Dep, Equipment		660		60		720				720
Accounts Payable		516				516				516
Wages payable				90		90				90
Jim Spool, Capital		1,632				1,632				1,632
Sales		11,040				11,040		11,040
Sales returns and allowances	546				546		546
Sales discounts	216				216		216
Cost of goods sold	4,986			15	4,971		4,971
Wages expense	1,716		90		1,806		1,806
Rent expense	792				792		792
Telephone expense	114				114		114
Insurance expense			150		150		150
Depreciation expense			60		60		60
Miscellaneous expense	96				96		96
Totals	13,848	13,848	315	315	13,998	13,998	8,751	11,040	5,247	2,958
Net Income							2,289			2,289
	13,848	13,848	315	315	13,998	13,998	11,040	11,040	5,247	5,247

Therefore net income for the year ending December 31, 2018 is $2,289

Working Notes:-

1) Inventory as per physical count is $615 and inventory in trial balance is $600, therefore merchandise inventory is increased (by debiting $15) and cost of goods sold is decreased (by crediting $15).

2) Prepaid Insurance is credited and insurance expense is debited by $150.

3) Depreciation expense is debited and accumulated depreciation is credited by $60.

4) Wages expense is debited and wages payable is credited by $90.