Recording adjustments and completing the worksheet.The Artisan Wines is a retail store sel...

Recording adjustments and completing the worksheet.

The Artisan Wines is a retail store selling vintage wines. On December 31, 2016, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

INSTRUCTIONS:

1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2016.

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2. Enter the adjustments below in the Adjustments section of the worksheet. Identify each adjustment with the appropriate letter.

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3. Complete the worksheet.

ADJUSTMENTS:

a.–b. Merchandise inventory at December 31, 2016, was counted, and determined to be $13,000.

c. The amount recorded as prepaid advertising represents $480 paid on September 1, 2016, for 12 months of advertising.

d. The amount of supplies on hand at December 31 was $160.

e. Depreciation on store equipment was $3,000 for 2016.

f. Depreciation on office equipment was $1,125 for 2016.

g. Unearned Seminar Fees represents $6,000 received on November 1, 2016, for six seminars. At December 31, four of these seminars had been conducted.

h. Wages owed but not paid at December 31 were $500.

i. On December 31, 2016, the firm owed the employer’s social security tax ($31.00) and Medicare tax ($7.25).

j. The note payable bears interest at 6% per annum. One month interest is owed at December 31, 2016.

Analyze: What was the amount of revenue earned by conducting seminars during the year ended December 31, 2016?