ACC1020_Instructions_STUDENT_Comp Problem 2

P15-10B Additional Instructions to what is stated on page 608 in the text.

Read all instructions before starting your work. This assessment is worth 150 points.

Use the worksheet file as provided for Darby Kite Store as of December 31, 20X1.

Perform the Adjustments at the end of the year:

A and b): Merchandise Inventory as of December 31, 20X1 = $ 23,600.00

C) Unused supplies on hand $ 1,050.00

D) Insurance expired $ 250.00

E) Depreciation expense for the year: $ 400.00

F) Wages earned but not paid $ 360.00

G) Unearned revenues on December 31: $ 500.00

REQUIRED: (NOTE that this is slightly changed from the text book; added prepare the Income Statement on sheet 1 in the file)

1) Prepare the worksheet as provided in the separate file.

2) Prepare the adjusting entries in the separate file.

3) Prepare the Income Statement after making the adjustments. (SEE SHEET 1 on the file as provided)

4) Prepare the closing entries (these are NOT posted to the worksheet).

5) Prepare a post- closing trial balance and Post-closing Balance Sheet.

6) Prepare the reversing entries as required.

1.

Darby Kite Store

Work Sheet

For Year Ended December 31, 20-1

Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Balance Sheet

Account Title

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash

11,700

Accounts Receivable

11,200

Merchandise Inventory

25,000

Supplies

1,200

Prepaid Insurance

800

Equipment

5,400

Accum. Depr. - Equipment

800

Accounts Payable

7,100

Wages Payable

Sales Tax Payable

250

Unearned Revenue

3,000

W. P. Ellis, Capital

50,000

W. P. Ellis, Drawing

10,500

Income Summary

Sales

55,490

Sales Returns & Allowances

1,450

Purchases

34,500

Purchases Returns & Allow.

1,100

Purchases Discounts

630

Freight-In

360

Wages Expense

10,880

Advertising Expense

740

Supplies Expense

Telephone Expense

1,100

Utilities Expense

2,300

Insurance Expense

Depreciation Exp. - Equipment

Miscellaneous Expense

320

Interest Expense

920

118,370

118,370

Net Income

2.

GENERAL JOURNAL

Date

Description

Debit

Credit

20-1

Adjusting Entries

Dec. 31

(a)

(b)

(c)

(d)

(e)

(f)

(g)

3 and 5.

GENERAL JOURNAL

Date

Description

Debit

Credit

20-1

Closing Entries

Dec.

31

Purchases Returns & Allowances

Purchases Discounts

31

Sales Returns & Allowances

Purchases

Freight-In

Wages Expense

Advertising Expense

Supplies Expense

Telephone Expense

Utilities Expense

Insurance Expense

Depreciation Exp. - Equipment

Miscellaneous Expense

Interest Expense

31

31

20-2

Reversing Entry

Jan.

1

4.
Darby Kite Store
Post-Closing Trial Balance
December 31, 20-1
	Account Title				Debit Balance			Credit Balance
	Cash				$ 11,700
	Accounts Receivable
	Merchandise Inventory
	Supplies
	Prepaid Insurance
	Equipment
	Accumulated Depreciation - Equipment
	Accounts Payable
	Wages Payable
	Sales Tax Payable
	Unearned Revenue
	M. D. Akins, Capital
					$ 11,700	*		$ -