A portion of Johnson€™s Farm Supply work sheet for the year ended December 31 follows:

Required
1. Determine the entries that appeared in the Adjustments columns and prepare the general journal entries for the adjustments in the general journal, page 19.
2. Determine the net income for the year.
3. What is the amount of the endingcapital?

INCOME STATEMENT DEBIT BALANCE SHEET DEBIT 5 ACCOUNT NAME 6 Cash CREDIT CREDIT 7 Accounts Receivable 8Suppliee 9Merchandise Inventory 10 Prepaid Insuranoe 95,000.00 75,250.00 750.00 75,262.00 400.00 11Equipment 12Accumulated Dspreciation, Equipment 13 Accounts Payable 14 Uneaned Revenues 38,550.00 12446.00 3,600.00 268,933.75 15 V. Johnson, Capital 27,250.00 16 V. ohnson, Drawing 17 Sales 325,024.00 1 Sales Returns and Alowances 19 Purchases 7,526.20 205,576.00 20Purchases Retums and Allowances 38,026.00 2,500.00 21 Purchases Discounts 22 Freight In 10,83640 62,185.00 1 1400.00 23 Salaries Expense Rent Expense 25 26Income Summary 27 Depreciation Expense, Equipment 28 Insurance Expense 74,852.0075,282.00 19,275.00 3,600.00 29Salaries Payable 30 1,195.85 395,250.60 440,812.00 370,28700 324725.60 31 > KI Sheet1Sheet2 Sheet3