A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown below....

 

  

 

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A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown below. Basket Corner UNADJUSTED TRIAL BALANCE December 31, 20- ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,000.00 2 Accounts Receivable 8,100.00 3 Merchandise Inventory 32,000.00 4 Supplies 7,100.00 5 Prepaid Insurance 3,600.00 6 Land 40,000.00 7 Building 45,000.00 S Accumulated Depreciation-Building 16,000.00 Instructions Accumulated Depreciation-Building 16,000.00 9 Store Equipment 27,000.00 10 Accumulated Depreciation-Store Equipment 5,500.00 11 Accounts Payable 3,600.00 12 Wages Payable 15 Sales Tax Payable 6,200.00 14 Unearned Decorating Revenue 6,300.00 15 Mortgage Payable 36,000.00 16 L Palermo, Capital 112,050.00 17 L Palermo, Drawing 31,000.00 Income Summary 19 Sales 125,000.00 20 Sales Returns and Allowances 2,600.00 1 Decorating Revenue 21 Purchases 38,000.00 Instructions 22 Purchases 38,000.00 23 Purchases Returns and Allowances 2,200.00 24 Purchases Discounts 1,700.00 25 Freight-In 1,900.00 26 Wages Expense 38,000.00 27 Advertising Expense 4,200.00 28 Supplies Expense 29 Phone Expense 1,870.00 so Utilities Expense 8,400.00 $1 Insurance Expense 32 Depreciation Expense-Building 33 Depreciation Expense-Store Equipment 34 Miscellaneous Expense 780.00 55 Totals 314,550.00 314,550.00 Year-end adjustment information is provided below. (a and b) Merchandise inventory costing $24,000 is on hand as of December 31, 20--. (The periodic inventory system is used.) (c) Supplies remaining at the end of the year, $2,100. (d) Unexpired insurance on December 31, $2,600. (e) Depreciation expense on the building for 20-, $5,300. (0 Depreciation expense on the store equipment for 20-, $3,800. (a) Unearned decorating revenue as of December 31, $1,650. (h) Wages earned but not paid as of December 31, $750. Required: 1. Complete the Adjustments columns. 2. Complete the work sheet. 3. Enter the adjustments in a general journal. A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown below. Basket Corner UNADJUSTED TRIAL BALANCE December 31, 20- ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,000.00 2 Accounts Receivable 8,100.00 3 Merchandise Inventory 32,000.00 4 Supplies 7,100.00 5 Prepaid Insurance 3,600.00 6 Land 40,000.00 7 Building 45,000.00 S Accumulated Depreciation-Building 16,000.00 Instructions Accumulated Depreciation-Building 16,000.00 9 Store Equipment 27,000.00 10 Accumulated Depreciation-Store Equipment 5,500.00 11 Accounts Payable 3,600.00 12 Wages Payable 15 Sales Tax Payable 6,200.00 14 Unearned Decorating Revenue 6,300.00 15 Mortgage Payable 36,000.00 16 L Palermo, Capital 112,050.00 17 L Palermo, Drawing 31,000.00 Income Summary 19 Sales 125,000.00 20 Sales Returns and Allowances 2,600.00 1 Decorating Revenue 21 Purchases 38,000.00 Instructions 22 Purchases 38,000.00 23 Purchases Returns and Allowances 2,200.00 24 Purchases Discounts 1,700.00 25 Freight-In 1,900.00 26 Wages Expense 38,000.00 27 Advertising Expense 4,200.00 28 Supplies Expense 29 Phone Expense 1,870.00 so Utilities Expense 8,400.00 $1 Insurance Expense 32 Depreciation Expense-Building 33 Depreciation Expense-Store Equipment 34 Miscellaneous Expense 780.00 55 Totals 314,550.00 314,550.00 Year-end adjustment information is provided below. (a and b) Merchandise inventory costing $24,000 is on hand as of December 31, 20--. (The periodic inventory system is used.) (c) Supplies remaining at the end of the year, $2,100. (d) Unexpired insurance on December 31, $2,600. (e) Depreciation expense on the building for 20-, $5,300. (0 Depreciation expense on the store equipment for 20-, $3,800. (a) Unearned decorating revenue as of December 31, $1,650. (h) Wages earned but not paid as of December 31, $750. Required: 1. Complete the Adjustments columns. 2. Complete the work sheet. 3. Enter the adjustments in a general journal.

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