The trial balance for Cascade Bicycle Shop, a business owned by David Lamond, is shown below. Year-end adjustment information is as follows:

(a and b) Merchandise inventory costing $22,000 is on hand as of December 31, 20--. (The periodic inventory system is used.)

(c) Supplies remaining at the end of the year, $2,400.

(d) Unexpired insurance on December 31, $1,750.

(e) Depreciation expense on the building for 20--, $4,000.

(f) Depreciation expense on the store equipment for 20--, $3,600.

(g) Unearned storage revenue as of December 31, $1,950.

(h) Wages earned but not paid as of December 31, $750.

REQUIRED

1. Complete the Adjustments columns, identifying each adjustment with its corresponding letter.

2. Complete the work sheet.

3. Enter the adjustments in the generaljournal.

Transcribed Image Text:

Cascade Bicyde Shop Trial Balance December 31, 20- ACCOUNT ITLE DEBIT BALANCE BEDIT BALANCE 23 00 0 00 15 0 0 0 00 31 0 0 0 00 기리|01 0| 00 46 0 0 00 28 00 0 00 53 0 0 0 00 Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Land Building 1기1010101 00 Accumulated Depreciation-Building 2끼010101 00 Store Equipment 9 0 00 00 3800 00 Accumulated Depreciation-Store Equipment Accounts Payable Wages Payable Sales Tax Payable 3050 00 5|60 0 00 42 000 00 165 7 6 0 00 Unearned Storage Revenue Mortgage Payable D. Lamond, Capital D. Lamond, Drawing Income Summary 33 000 00 51 000 00 Sales 24 00 00 Sales Returns and Allowances Storage Revenue 21 0 0 0 00 Purchases Purchases Returns and Allowances 1300 00 1900 00 Purchases Discounts 1800 00 35 0 0 0 00 5 7 0 0 00 Freight-In Wages Expense Advertising Expense Supplies Expense Telephone Expense Utilities Expense Insurance Expense Depreciation Expense Building 2 2 00 00 96 0 0 00 Depreciation ExpenseStore Equipment Miscellaneous Expense 9 10 00 300 4 10 00 300 410 00