Chapter 14, Problem 10SPA

COMPLETION OF A WORK SHEET SHOWING A NET LOSS 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. 1. Complete the Adjustments columns, identifying each adjustment with its corresponding letter.
2. 2. Complete the work sheet.
3. 3. Enter the adjustments in the general journal.