A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown on page 567. Year-end adjustment information is provided below. (a and b) Merchandise inventory costing $24,000 is on hand as of December 31, 20--.

(The periodic inventory system is used.)

(c) Supplies remaining at the end of the year, $2,100.

(d) Unexpired insurance on December 31, $2,600.

(e) Depreciation expense on the building for 20--, $5,300.

(f) Depreciation expense on the store equipment for 20--, $3,800.

(g) Unearned decorating revenue as of December 31, $1,650.

(h) Wages earned but not paid as of December 31, $750.

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:

Basket Corner Trial Balance December 31, 20- DEBIT BALANCE ACCOUNT TITLE CREDIT BALANCE 25 0 00 00 811|이101 00 32 0 00 00 7100 00 36 00 00 40 0 00 00 45 0 00 00 Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Land Building Acumulated Depredation-Building 16 0 0 0 00 2끼10|0101 00 Store Equipment 55 0 0 00 36 0 0 00 Acumulated Depredation-Store Equipment Accounts Payable Wages Payable Sales Tax Payable 6 200 00 63 00 00 36 0 00 00 Uneamed Decorating Revenue Mortgage Payable L Palermo, Capital L. Palermo, Drawing 112 0 50 00 31 00 0 00 Income Summary 125 00 0 00 Sales 2600 00 Sales Retums and Allowances Decorating Revenue 38 000 00 Purchases 2200 00 17 00 00 Purchases Returns and Allowances Purchases Discounts 19 00 00 38 0 0 0 00 42 00 00 Freight-In Wages Expense Advertising Expense Supplies Expense 118| 기0| 00 Telephone Expense 8400 00 Utilities Expense Insurance Expense Depreciation Expense Building Depredation Expense-Store Equipment 780 00 314 5 50 00 Miscellaneous Expense 314 5 50 00