The partial work sheet shown on page 559 is taken from the books of Diamond Music Store, a business owned by Ned Diamond, for the year ended December 31, 20--.

REQUIRED

1. Analyze the work sheet and determine the adjusted trial balance and the adjusting entries by working backward from the Income Statement and Balance Sheet columns.

2. Journalize the adjusting entries in a general journal.

3. Prepare the cost of goods sold section of the income statement for Diamond MusicStore.

Transcribed Image Text:

Diamond Music Store Work Sheet For Year Ended December 31, 20- - TRUAL BLANCE ALANTMENTS ALLD TRE BALANCE IMCCE STAMENT BLANCE SEET ACCUNT TILE DET CEDE CEDIT DRT CRIDIT CEDIT 31 00 0 00 11980 00 33 60 0 00 714 0 00 5985 00 36 200 00 51 8 50 00 31 0 00 00 119 80 00 39100 00 1965 00 1235 00 36 2 00 00 51 8 50 00 Cash Accounts Recelvable Mirchandise inventory Supplis Prapaid insurance Land Bulding Accum. Depr.-Bulding Store Equlpment Accum. Depr.-Store Equipment Accounts Payable 135 90 00 18 8 75 00 32675 00 32 675 00 10 2 90 00 5895 00 14 755 00 589500 125000 Wages Payable Sales Tax Payable Unearned Rent Revenue 6375 00 88 50 00 42 4 00 00 116 3 50 00 637500 293000 42 4 0 0 00 Mortgage Payable N. Dlamond, Capital 116 3 50 00 39, 50 0 00 39 500 00 N. Damond, Drawing Income Summary 33 60 0 00 39 100 00 148 0 0 0 00 148 0 00 00 Sales 280 0 00 Sales Returns and Allowances Rent Revenue 2800 00 5920 00 40 700 00 40 700 00 Purchases 2775 00 23 25 00 2775 00 2325 00 Purchases Returns and Allowances Purchases Discounts 1875 00 4700 0 00 4695 00 Freighta Wages Exponsa Aovertising Expense Supples Expense Telaphone Expensa Utitles Expense Insurance Expense Depr. Expense-Bulding Depr. Expense-Store Equipment Misceltaneous Expinse 1875 00 43 25 0 00 469500 5175 00 2250 00 6825 00 4750 00 528500 4465 00 775 00 161 4 4 5 00 198 120 00 245 5 05 00 208 8 30 00 30 67 5 00 198 1 2 0 00 198 1 20 00 245 5 05 00 245 5 0 5 00 2250 00 6825 00 77 5 00 356 8 5 0 00 356 8 50 00 36 6 75 00 Net income