The Artisan Wines is a retail store selling fine wines. On December 31, 20X1, the firm’s general ledger contained the accounts and balances below. All account balances are normal. Cash $ 41,248 Accounts Receivable 570 Prepaid Advertising 900 Supplies 370 Merchandise Inventory 15,700 Store Equipment 25,700 Accumulated Depreciation—Store Equipment 3,700 Office Equipment 5,700 Accumulated Depreciation—Office Equipment 1,850 Notes Payable, due 20X2 27,000 Accounts Payable 2,775 Wages Payable Social Security Tax Payable Medicare Tax Payable Unearned Seminar Fees 8,500 Interest Payable Anthony Ponte, Capital 33,400 Anthony Ponte, Drawing 14,810 Income Summary Sales 157,470 Sales Discounts 270 Seminar Fee Income Purchases 91,700 Purchases Returns and Allowances 1,700 Freight In 260 Rent Expense 13,900 Wages Expense 22,000 Payroll Taxes Expense 3,047 Depreciation Expense—Store Equipment Depreciation Expense—Office Equipment Advertising Expense Supplies Expense Interest Expense 220 ADJUSTMENTS a.–b. Merchandise inventory at December 31, 20X1, was counted and determined to be $12,700. The amount recorded as prepaid advertising represents $900 paid on September 1, 20X1, for 12 months of advertising. The amount of supplies on hand at December 31 was $135. Depreciation on store equipment was $3,300 for 20X1. Depreciation on office equipment was $1,175 for 20X1. Unearned Seminar Fees represent $8,500 received on November 1, 20X1, for five seminars. At December 31, three of these seminars had been conducted. Wages owed but not paid at December 31 were $600. On December 31, 20X1, the firm owed the employer’s social security tax ($37.20) and Medicare tax ($8.70). The note payable bears interest at 8 percent per annum. Two months interest is owed at December 31, 20X1. Required: Prepare the Trial Balance and adjustment trial balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 4E: Indicate the work sheet columns (Income Statement Debit, Income Statement Credit, Balance Sheet...

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Cash	$ 41,248
Accounts Receivable	570
Prepaid Advertising	900
Supplies	370
Merchandise Inventory	15,700
Store Equipment	25,700
Accumulated Depreciation—Store Equipment	3,700
Office Equipment	5,700
Accumulated Depreciation—Office Equipment	1,850
Notes Payable, due 20X2	27,000
Accounts Payable	2,775
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Unearned Seminar Fees	8,500
Interest Payable
Anthony Ponte, Capital	33,400
Anthony Ponte, Drawing	14,810
Income Summary
Sales	157,470
Sales Discounts	270
Seminar Fee Income
Purchases	91,700
Purchases Returns and Allowances	1,700
Freight In	260
Rent Expense	13,900
Wages Expense	22,000
Payroll Taxes Expense	3,047
Depreciation Expense—Store Equipment
Depreciation Expense—Office Equipment
Advertising Expense
Supplies Expense
Interest Expense	220

ADJUSTMENTS

a.–b. Merchandise inventory at December 31, 20X1, was counted and determined to be $12,700.

The amount recorded as prepaid advertising represents $900 paid on September 1, 20X1, for 12 months of advertising.
The amount of supplies on hand at December 31 was $135.
Depreciation on store equipment was $3,300 for 20X1.
Depreciation on office equipment was $1,175 for 20X1.
Unearned Seminar Fees represent $8,500 received on November 1, 20X1, for five seminars. At December 31, three of these seminars had been conducted.
Wages owed but not paid at December 31 were $600.
On December 31, 20X1, the firm owed the employer’s social security tax ($37.20) and Medicare tax ($8.70).
The note payable bears interest at 8 percent per annum. Two months interest is owed at December 31, 20X1.

Required:

Prepare the Trial Balance and adjustment trial balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1.

Account Name
Cash
Accounts Receivable
Prepaid Advertising
Supplies
Merchandise Inventory
Store Equipment
Accumulated Depreciation-Store Equipment
Office Equipment
Accumulated Depreciation Office Equipment
Notes Payable, due 20X2
Accounts Payable
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Unearned Seminar Fees
Interest Payable
Anthony Ponte, Capital
Anthony Ponte, Drawing
Income Summary
Sales
Sales Discounts
Seminar Fee Income
Purchases
Purchases Returns and Allowances
Freight In
Rent Expense
Wages Expense
Payroll Taxes Expense
Depreciation Expense-Store Equipment
Depreciation Expense-Office Equipment
Advertising Expense
Supplies Expense
Interest Expense
Totals
Net Income
$
Trial Balance
Debit
0.00 $
Credit
0.00
$
Artisan Wines
Worksheet
Year Ended December 31, 20X1
Adjustments
Debit
0.00
$
Credit
Adjusted Trial Balance
Debit
Credit
0.00 $
0.00
$
0.00

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