Question

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.
Cash.......................28,386
Accounts Receivable ............... 500
Prepaid Advertising ................ 480
Supplies .................. 300
Merchandise Inventory ............. 15,000
Store Equipment................. 25,000
Accumulated Depreciation—Store Equipment ..... 3,000
Office Equipment ............... 5,000
Accumulated Depreciation—Office Equipment .... 1,500
Notes Payable, due 2017 ............. 20,000
Accounts Payable ................ 2,705
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Unearned Seminar Fees .............. 6,000
Interest Payable
Vincent Arroyo, Capital ............ 32,700
Vincent Arroyo, Drawing ............ 14,110
Income Summary
Sales ................... 153,970
Sales Discounts ................. 200
Seminar Fee Income
Purchases ................. 91,000
Purchases Returns and Allowances ........ 1,000
Freight In .................. 225
Rent Expense ................ 13,200
Wages Expense .............. 24,000
Payroll Taxes Expense ........... 3,324
Depreciation Expense—Store Equipment
Depreciation Expense—Office Equipment
Advertising Expense
Supplies Expense
Interest Expense .............. 150

INSTRUCTIONS:
1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2016.
2. Enter the adjustments below in the Adjustments section of the worksheet. Identify each
adjustment with the appropriate letter.
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?



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  • CreatedAugust 08, 2014
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