Question

The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows:
Cash ....................... $ 12,482
Accounts Receivable ................ 38,962
Merchandise Inventory ............... 118,628
Supplies ..................... 1,850
Prepaid Insurance .................. 2,488
Store Equipment ................... 32,824
Accumulated Depreciation, Store Equipment ....... 26,420
Office Equipment ................. 11,236
Accumulated Depreciation, Office Equipment ...... 3,410
Notes Payable ..................... 6,000
Accounts Payable .................. 23,420
Unearned Rent ................... 3,150
L. Pelango, Capital ................. 120,532
L. Pelango, Drawing .................. 28,000
Sales ........................ 647,090
Sales Returns and Allowances .............. 8,848
Purchases ..................... 519,374
Purchases Returns and Allowances .......... 12,440
Purchases Discounts ................ 8,634
Freight In ..................... 22,824
Wages Expense .................. 52,800
Interest Expense ................... 780

Data for the adjustments are as follows:
a– b. Merchandise Inventory at December 31, $ 104,565.
c. Wages accrued at December 31, $ 934.
d. Supplies inventory (on hand) at December 31, $ 755.
e. Depreciation of store equipment, $ 4,982.
f. Depreciation of office equipment, $ 1,531.
g. Insurance expired during the year, $ 935.
h. Rent earned, $ 2,450.

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 16.



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  • CreatedOctober 21, 2014
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