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 JOURNALPAGE 5DATEDESCRIPTIONPOST. REF.DEBITCREDIT20-1(a)Income SummarvMerchandise Inventory(b)(c)(d)(e)(f)(9)(h)(i) TJ's Specialty ShopEnd-of-Period SpreadsheetFor the Year Ended December 31, 20-1Trial BalanceAdjustmentsAdjusted Trial BalanceAccount TitleDebitCreditDebitCreditDebitCreditCashAccounts ReceivableMerchandise InventoryEstimated Returns InventorySupplies12,54812,5487,2037,20321,800(b) 19,700 (a) 21,80019,700250(e)300 (d)2503001,155(f)630525Prepaid Insurance1,380(9)3801,000LandBuilding8,7508,75052,00052,000Accumulated Depreciation-Building9,200(h)80010,000Store Equipment28,75028,750Accumulated Depreciation-Store Equipment9,300(i)4509,750Accounts PayableCustomer Refunds Payable4,3504,350(c)300100400Wages Payable()330330Sales Tax Payable1,5181,518Mortgage Payable12,52512,525Tom Jones, CapitalTom Jones, DrawingIncome Summary90,00090,0008,5008,500(a) 21,800 (b) 19,70021,80019,700(d)250 (e)300250300SalesSales Returns and AllowancesPurchasesPurchases Returns and AllowancesPurchases DiscountsFreight-in127,700127,7001,430(c)1001,53066,60066,600610610698698175175Wages ExpenseAdvertising Expense27,200G)33027,5304,7004,700Supplies Expense(f)630630Phone ExpenseUtilities Expense2,1802,1807,5307,530Insurance Expense(9)380380Depreciation Expense-Building(h)800800Depreciation Expense-Store Equipment(i)450450Miscellaneous Expense2,7002,700Interest Expense1,3501,350256,201 256,20144,74044,740277,881277,881138,605149,008Net Income10,403

Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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)

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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