At the end of the year, the following adjustments (a)–(j) need to be made: (a, b) Merchandise inventory as of December 31, $19,700. (c, d, e) Jones estimates that customers will be granted $400 in refunds of this year’s sales next year, and the merchandise expected to be returned will have a cost of $300. (f) Unused supplies on hand, $525. (g) Unexpired insurance on December 31, $1,000. (h) Depreciation expense on the building for the year, $800. (i) Depreciation expense on the store equipment for the year, $450. (j) Wages earned but not paid as of December 31, $330. journalise and post adjusting entries.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At the end of the year, the following adjustments (a)–(j) need to be made:

(a, b) Merchandise inventory as of December 31, $19,700.
(c, d, e) Jones estimates that customers will be granted $400 in refunds of this year’s sales next year, and the merchandise expected to be returned will have a cost of $300.
(f) Unused supplies on hand, $525.
(g) Unexpired insurance on December 31, $1,000.
(h) Depreciation expense on the building for the year, $800.
(i) Depreciation expense on the store equipment for the year, $450.
(j) Wages earned but not paid as of December 31, $330.

journalise and post adjusting entries. 

6. Journalize and post adjusting entries.
GENERAL JOURNAL
PAGE 5
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
20-1
(a)
Income Summarv
Merchandise Inventory
(b)
(c)
(d)
(e)
(f)
(9)
(h)
(i)
Transcribed Image Text:6. Journalize and post adjusting entries. GENERAL JOURNAL PAGE 5 DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-1 (a) Income Summarv Merchandise Inventory (b) (c) (d) (e) (f) (9) (h) (i)
TJ's Specialty Shop
End-of-Period Spreadsheet
For the Year Ended December 31, 20-1
Trial Balance
Adjustments
Adjusted Trial Balance
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
Accounts Receivable
Merchandise Inventory
Estimated Returns Inventory
Supplies
12,548
12,548
7,203
7,203
21,800
(b) 19,700 (a) 21,800
19,700
250
(e)
300 (d)
250
300
1,155
(f)
630
525
Prepaid Insurance
1,380
(9)
380
1,000
Land
Building
8,750
8,750
52,000
52,000
Accumulated Depreciation-Building
9,200
(h)
800
10,000
Store Equipment
28,750
28,750
Accumulated Depreciation-Store Equipment
9,300
(i)
450
9,750
Accounts Payable
Customer Refunds Payable
4,350
4,350
(c)
300
100
400
Wages Payable
()
330
330
Sales Tax Payable
1,518
1,518
Mortgage Payable
12,525
12,525
Tom Jones, Capital
Tom Jones, Drawing
Income Summary
90,000
90,000
8,500
8,500
(a) 21,800 (b) 19,700
21,800
19,700
(d)
250 (e)
300
250
300
Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Purchases Discounts
Freight-in
127,700
127,700
1,430
(c)
100
1,530
66,600
66,600
610
610
698
698
175
175
Wages Expense
Advertising Expense
27,200
G)
330
27,530
4,700
4,700
Supplies Expense
(f)
630
630
Phone Expense
Utilities Expense
2,180
2,180
7,530
7,530
Insurance Expense
(9)
380
380
Depreciation Expense-Building
(h)
800
800
Depreciation Expense-Store Equipment
(i)
450
450
Miscellaneous Expense
2,700
2,700
Interest Expense
1,350
1,350
256,201 256,201
44,740
44,740
277,881
277,881
138,605
149,008
Net Income
10,403
Transcribed Image Text:TJ's Specialty Shop End-of-Period Spreadsheet For the Year Ended December 31, 20-1 Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Supplies 12,548 12,548 7,203 7,203 21,800 (b) 19,700 (a) 21,800 19,700 250 (e) 300 (d) 250 300 1,155 (f) 630 525 Prepaid Insurance 1,380 (9) 380 1,000 Land Building 8,750 8,750 52,000 52,000 Accumulated Depreciation-Building 9,200 (h) 800 10,000 Store Equipment 28,750 28,750 Accumulated Depreciation-Store Equipment 9,300 (i) 450 9,750 Accounts Payable Customer Refunds Payable 4,350 4,350 (c) 300 100 400 Wages Payable () 330 330 Sales Tax Payable 1,518 1,518 Mortgage Payable 12,525 12,525 Tom Jones, Capital Tom Jones, Drawing Income Summary 90,000 90,000 8,500 8,500 (a) 21,800 (b) 19,700 21,800 19,700 (d) 250 (e) 300 250 300 Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Purchases Discounts Freight-in 127,700 127,700 1,430 (c) 100 1,530 66,600 66,600 610 610 698 698 175 175 Wages Expense Advertising Expense 27,200 G) 330 27,530 4,700 4,700 Supplies Expense (f) 630 630 Phone Expense Utilities Expense 2,180 2,180 7,530 7,530 Insurance Expense (9) 380 380 Depreciation Expense-Building (h) 800 800 Depreciation Expense-Store Equipment (i) 450 450 Miscellaneous Expense 2,700 2,700 Interest Expense 1,350 1,350 256,201 256,201 44,740 44,740 277,881 277,881 138,605 149,008 Net Income 10,403
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