Work Sheet Extensions for Merchandise Inventory Adjustments: Periodic Inventory System

1. Complete the Adjustments columns for the merchandise inventory.

2. Extend the merchandise inventory to the Adjusted Trial Balance and Balance Sheet columns.

3. Extend the remaining accounts to the Adjusted Trial Balance and Income Statement columns.

4. Prepare a cost of goods sold section from the partial work sheet.

The following partial work sheet is taken from Kevin's Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $51,330.

Merchandising Inventory:

1. Complete the Adjustments columns for the merchandise inventory.

2. Extend the merchandise inventory to the Adjusted Trial Balance and Balance Sheet columns.

3. Extend the remaining accounts to the Adjusted Trial Balance and Income Statement columns.

Kevin's Gift Shop Work Sheet (Partial) For Year Ended December 31, 20- TRIAL BALANCE ADJUSTMENTS DEBIT CREDIT DEBIT CREDIT 40,870 ACCOUNT TITLE Merchandise Inventory Income Summary Purchases Purchases Returns and Allowances Purchases Discounts Freight-In 88,875 2,045 2,900 415 Work Sheet (Partial) For Year Ended December 31, 20- TRIAL BALANCE ADJUSTED TRIAL BALANCE INCOME STATEMENT BAANCE S ACCOUNT TITLE DEBIT CREDET DEBIT DEBIT CREDIT DEBIT Merchandise Inventory 40,870 Income Summary 88,875 Purchases Returns and Allowances 2.045 2.900 Freight-In 415 4. Prepare a cost of goods sold section from the partial work sheet. Kevin's Gift Shop Cost of Goods Sold Section Cost of goods sold: Net purchases Cost of goods sold