Question

The accounts in the ledger of Markey’s Mountain Shop with the balances as of December 31, the end of its fiscal year, are as follows:
Cash ........................ $ 12,840
Accounts Receivable ................ 3,242
Merchandise Inventory ............... 137,757
Store Supplies .................... 1,530
Prepaid Insurance .................. 2,845
Land ....................... 22,000
Building ..................... 86,000
Accumulated Depreciation, Building ........... 36,940
Store Equipment ................... 54,952
Accumulated Depreciation, Store Equipment ...... 13,348
Notes Payable ................... 10,500
Accounts Payable ................. 18,540
Sales Tax Payable ................. $ 5,706
B. Markey, Capital ................. 171,000
B. Markey, Drawing ................. 52,000
Sales ...................... 458,905
Sales Returns and Allowances ............ 7,590
Cost of Goods Sold ................ 265,315
Salary Expense .................. 52,973
Advertising Expense ................. 6,288
Utilities Expense .................. 7,355
Property Tax Expense ............... 800
Miscellaneous Expense ................ 775
Interest Expense .................. 677
Data for the adjustments are as follows.

Assume that Markey’s Mountain Shop uses the perpetual inventory system.
a. Merchandise Inventory at December 31, $ 140,357.
b. Store supplies inventory (on hand) at December 31, $ 540.
c. Depreciation of building, $ 3,400.
d. Depreciation of store equipment, $ 3,800.
e. Salaries accrued at December 31, $ 1,250.
f. Insurance expired during the year, $ 1,480.

Required
1. Complete the work sheet after entering the account names and balances onto the work sheet.
2. Journalize the adjusting entries on journal page 63.



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  • CreatedOctober 21, 2014
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