Chapter 11, Problem 4PA

Here are the accounts in the ledger of Misha’s Jewel Box, with the balances as of December 31, the end of its fiscal year.

Here are the data for the adjustments. Assume that Misha’s Jewel Box uses the perpetual inventory system.

a. Merchandise Inventory at December 31, $124,630.

b. Insurance expired during the year, $1,294.

c. Depreciation of building, $3,300.

d. Depreciation of store equipment, $6,470.

e. Salaries accrued at December 31, $2,470.

f. Store supplies inventory (on hand) at December 31, $1,959.

Required

1. 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL.
2. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.