The trial balance for the Seaside Kite Shop, a business owned by Joyce Kennington, is shown on page 548. Year-end adjustment information is as follows:

(a and b) Merchandise inventory costing $30,000 is on hand as of December 31, 20--. (The periodic inventory system is used.)

(c) Supplies remaining at the end of the year, $2,700.

(d) Unexpired insurance on December 31, $2,900.

(e) Depreciation expense on the building for 20--, $5,000.

(f) Depreciation expense on the store equipment for 20--, $3,200.

(g) Unearned rent revenue as of December 31, $2,200.

(h) Wages earned but not paid as of December 31, $900.

REQUIRED

1. Complete the Adjustments columns, identifying each adjustment with its corresponding letter.

2. Complete the work sheet.

3. Enter the adjustments in a generaljournal.

Transcribed Image Text:

Seaside Kite Shop Trial Balance December 31, 20 - ACCOUNT TITLE DEBIT BALANCE REDIT BALANCE 0 0 00 14 0 0 0 00 25 0 00 00 8 00 0 00 540 0 00 30 0 0 0 00 50 0 00 00 Cash 20 0 Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Land Building 20 0 00 Accumulated Depreciation-Building 00 35 0 00 00 Store Equipment 14 0 0 0 00 96 0 0 00 Accumulated Depreciation-Store Equipment Accounts Payable Wages Payable Sales Tax Payable 59 00 00 8900 00 45 0 0 0 00 65 4 10 00 Unearned Rent Revenue Mortgage Payable J. Kennington, Capital J. Kennington, Drawing 26 000 00 Income Summary 118 000 00 Sales 1기0101 00 Sales Returns and Allowances Rent Revenue 2끼|01010| 00 Purchases 1|4 00 00 1800 00 Purchases Returns and Allowances Purchases Discounts Freight-In Wages Expense Advertising Expense Supplies Expense Telephone Expense Utilitites Expense 2100 00 32 0 00 00 3600 00 13 50 00 8 0 0 0 00 Insurance Expense Depreciation Expense Building Depreciation Expense Store Equipment 8 6 0 00 Miscellaneous Expense 290 0 10 00 290 01