John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided is shown below.
Question:
John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided is shown below.
Waikiki Surf Shop
UNADJUSTED TRIAL BALANCE
December 31, 20--
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
1 | Cash | 30,000.00 | |
2 | Accounts Receivable | 22,500.00 | |
3 | Merchandise Inventory | 57,000.00 | |
4 | Supplies | 2,700.00 | |
5 | Prepaid Insurance | 3,600.00 | |
6 | Land | 15,000.00 | |
7 | Building | 135,000.00 | |
8 | Accumulated Depreciation-Building | 24,000.00 | |
9 | Store Equipment | 75,000.00 | |
10 | Accumulated Depreciation-Store Equipment | 22,500.00 | |
11 | Notes Payable | 7,500.00 | |
12 | Accounts Payable | 15,000.00 | |
13 | Wages Payable | ||
14 | Unearned Boat Rental Revenue | 33,000.00 | |
15 | J. Neff, Capital | 233,700.00 | |
16 | J. Neff, Drawing | 30,000.00 | |
17 | Income Summary | ||
18 | Sales | 300,750.00 | |
19 | Sales Returns and Allowances | 1,800.00 | |
20 | Boat Rental Revenue | ||
21 | Purchases | 157,500.00 | |
22 | Purchases Returns and Allowances | 1,200.00 | |
23 | Purchases Discounts | 1,500.00 | |
24 | Freight-In | 450.00 | |
25 | Wages Expense | 63,000.00 | |
26 | Advertising Expense | 11,250.00 | |
27 | Supplies Expense | ||
28 | Phone Expense | 5,250.00 | |
29 | Utilities Expense | 18,000.00 | |
30 | Insurance Expense | ||
31 | Depreciation Expense-Building | ||
32 | Depreciation Expense-Store Equipment | ||
33 | Miscellaneous Expense | 10,875.00 | |
34 | Interest Expense | 225.00 | |
35 | Totals | 639,150.00 | 639,150.00 |
Year-end adjustment data for the Waikiki Surf Shop are shown below.
| (a and b) | A physical count shows merchandise inventory costing $45,000 on hand as of December 31, 20--. Neff uses the periodic inventory system. |
| (c) | Supplies remaining at the end of the year, $600. |
| (d) | Unexpired insurance on December 31, $900. |
| (e) | Depreciation expense on the building for 20--, $6,000. |
| (f) | Depreciation expense on the store equipment for 20--, $4,500. |
| (g) | Wages earned but not paid as of December 31, $675. |
| (h) | Unearned boat rental revenue as of December 31, $3,000. |
Required:
| 1. | Prepare a year-end work sheet. |
| 2. | Journalize the adjusting entries. |
Expert Answer:
Answer 1 Waikiki Surf Shop Worksheet for the Year Ended December 31 20 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit ... View the full answer
