WORKING BACKWARD FROM THE INCOME STATEMENT AND BALANCE SHEET COLUMNS OF THE WORK SHEET TO DETERMINE ADJUSTED TRIAL BALANCE AND ADJUSTING ENTRIES The partially completed work sheet from the books of Lewis Music Store, a business owned by Hugo Lewis, for the year ended December 31, 20--, is shown on page 554.

REQUIRED

1. Analyze the work sheet and determine the adjusted trial balance and the adjusting entries by working backward from the Income Statement: and Balance Sheet columns.

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2. Journalize the adjusting entries in a general journal.

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3. Prepare the cost of goods sold section of the income statement for Lewis Music Store.

 

Transcribed Image Text:

PROBLEM 14-12A ACCOINTE 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 Supplies 5 Prepair InsuMACA 6 Land 7 Building 8 Accun. Depr.-Building 9 Store Equipment 10 Accun. Depr-Store Equipment 11 Accounts Payable 12 Wages Payable 13 Sales Tax Payable 14 Uneamed Rent Revenue 15 Mortgage Payable 16 H Levis, Capital 17 H. Lewis, Drawing 18 Income Summary 19 Sales 20 Sales Returns and Alowances 21 Rent Fevenue 22 Purchases 23 Purchases Retums and Allowances 24 Purchases Discounts 25 Freight In 26 Wages Expense 27 Advertising Expense 28 Supplies Expense 29 Phone Expense 30 Utilities Expense 31 Insurance Expense 32 Depr. Expense Buidina 33 Depr. Expense-Store Equipment 34 Miscellaneous Experse 35 36 Net Income 37 TRIAL BALANCE REDIT 2700000 13 300 00 34 000 00 530000 6100 00 31:00 0 00 52 000 00 39 000 00 3710 00 00 3 500 00 39 000 00 265000 42 000 00 417500 198000 7945 00 CREDIT 170 00 00 1190000 625000 G200.00 740000 4600000 1116 2000 13600000 253000 1975 00 925 00 346 8 75 00 346 8 75 00 Lewis Music Store Work Sheet For Year Ended December 31, 20- ADJUSTMENTS DENT CREDIT ADJUSTED FREAL BALANCE CREDIT DEBT PHCE STATEMENT DEBIT 340 00 00 38 000 00 136 000 00 350000 39 000 00 265000 4287500 417500 CREDIT 3800 1980 00 794500 4315 00 4145 00 297500 422500 253000 1975 00 BALANCE SHEET DEBIT 2700000 1330000 38 000 00 150000 178500 3100000 52 0,0 000 3900000 3700000 CREDIT 21 145 00 925 00 152 2 8 500 182 7 3 0 00 240 5 8 500 210 14 000 30 4 45 00 30 4 4500 182 7 3 000 182 7 3 0 00 240 585 00 2405 85 00 1 2 SNOOSINSHKRE22858823878885883885 D 4 14 8 75 00 10 6250 00 11 00 875 6200 00 3175 00 14 460 00 00 1116 2000 6 - 9 12 13 15 16 17 18 19 20 21 24 26 29 30 31 34 35 36 PROBLEM 14-12A ACCOINTE 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 Supplies 5 Prepair InsuMACA 6 Land 7 Building 8 Accun. Depr.-Building 9 Store Equipment 10 Accun. Depr-Store Equipment 11 Accounts Payable 12 Wages Payable 13 Sales Tax Payable 14 Uneamed Rent Revenue 15 Mortgage Payable 16 H Levis, Capital 17 H. Lewis, Drawing 18 Income Summary 19 Sales 20 Sales Returns and Alowances 21 Rent Fevenue 22 Purchases 23 Purchases Retums and Allowances 24 Purchases Discounts 25 Freight In 26 Wages Expense 27 Advertising Expense 28 Supplies Expense 29 Phone Expense 30 Utilities Expense 31 Insurance Expense 32 Depr. Expense Buidina 33 Depr. Expense-Store Equipment 34 Miscellaneous Experse 35 36 Net Income 37 TRIAL BALANCE REDIT 2700000 13 300 00 34 000 00 530000 6100 00 31:00 0 00 52 000 00 39 000 00 3710 00 00 3 500 00 39 000 00 265000 42 000 00 417500 198000 7945 00 CREDIT 170 00 00 1190000 625000 G200.00 740000 4600000 1116 2000 13600000 253000 1975 00 925 00 346 8 75 00 346 8 75 00 Lewis Music Store Work Sheet For Year Ended December 31, 20- ADJUSTMENTS DENT CREDIT ADJUSTED FREAL BALANCE CREDIT DEBT PHCE STATEMENT DEBIT 340 00 00 38 000 00 136 000 00 350000 39 000 00 265000 4287500 417500 CREDIT 3800 1980 00 794500 4315 00 4145 00 297500 422500 253000 1975 00 BALANCE SHEET DEBIT 2700000 1330000 38 000 00 150000 178500 3100000 52 0,0 000 3900000 3700000 CREDIT 21 145 00 925 00 152 2 8 500 182 7 3 0 00 240 5 8 500 210 14 000 30 4 45 00 30 4 4500 182 7 3 000 182 7 3 0 00 240 585 00 2405 85 00 1 2 SNOOSINSHKRE22858823878885883885 D 4 14 8 75 00 10 6250 00 11 00 875 6200 00 3175 00 14 460 00 00 1116 2000 6 - 9 12 13 15 16 17 18 19 20 21 24 26 29 30 31 34 35 36

Answer rating: 100% (QA)

Requirement 1 Analyze the worksheet and determine the adjusted trial balance A... View the full answer