The trial balance for the Venice Beach Kite Shop, a business owned by Molly Young, is shown below.

Venice Beach Kite Shop Trial Balance December 31, 20 --
ACCOUNT TITLE	DEBIT BALANCE	CREDIT BALANCE
Cash	19,743
Accounts Receivable	13,827
Merchandise Inventory	24,755
Supplies	7,957
Prepaid Insurance	5,540
Land	29,680
Building	49,020
Accumulated Depreciation - Building		19,608
Store Equipment	36,580
Accumulated Depreciation - Store Equipment		14,632
Accounts Payable		9,603
Wages Payable
Sales Tax Payable		5,960
Unearned Repair Revenue		8,950
Mortgage Payable		44,650
M. Young, Capital		63,760
M. Young, Drawing	26,442
Income Summary
Sales		119,850
Sales Returns and Allowances	1,756
Rent Revenue
Purchases	27,496
Purchases Returns and Allowances		1,356
Purchases Discounts		1,761
Freight-In	2,079
Wages Expense	31,567
Advertising Expense	3,505
Supplies Expense
Phone Expense	1,326
Utility Expense	8,027
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Store Equipment
Miscellaneous Expense	830
	290,130	290,130

Year-end adjustment information is as follows:

(a and b)

Merchandise inventory costing $34,519 is on hand as of December 31, 20--. (The periodic inventory system is used.)

(c)

Supplies remaining at the end of the year, $3,207.

(d)

Unexpired insurance on December 31, $3,769.

(e)

Depreciation expense on the building for 20--, $2,451.

(f)

Depreciation expense on the store equipment for 20--, $3,658.

(g)

Unearned rent revenue as of December 31, $4,480.

(h)

Wages earned but not paid as of December 31, $838.

1. Complete the Adjustments columns.

2. Complete the worksheet.

If an amount box does not require an entry, leave it blank.

Venice Beach Kite Shop Work Sheet For Year Ended December 31, 20--
	TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	19,743
Accounts Receivable	13,827
Merchandise Inventory	24,755
Supplies	7,957
Prepaid Insurance	5,540
Land	29,680
Building	49,020
Accumulated Depr.—Building		19,608
Store Equipment	36,580
Accumulated Depr.—Store Equip.		14,632
Accounts Payable		9,603
Wages Payable
Sales Tax Payable		5,960
Unearned Rent Revenue		8,950
Mortgage Payable		44,650
M. Young, Capital		63,760
M. Young, Drawing	26,442
Income Summary
Sales		119,850
Sales Returns and Allowances	1,756
Rent Revenue
Purchases	27,496
Purchases Returns and Allow.		1,356
Purchases Discounts		1,761
Freight-In	2,079
Wages Expense	31,567
Advertising Expense	3,505
Supplies Expense
Phone Expense	1,326
Utility Expense	8,027
Insurance Expense
Depreciation Expense—Building
Depreciation Exp.—Store Equip.
Miscellaneous Expense	830
	290,130	290,130
Net Income

Completion of a Work Sheet Showing a Net Income

1. Complete the Adjustments columns.

2. Complete the worksheet.

3. Enter the adjustments in a general journal. If an amount box does not require an entry, leave it blank.

Answer rating: 100% (QA)

TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBI... View the full answer