Chapter 14, Problem 1MP

John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 563. Year-end adjustment data for the Waikiki Surf Shop are shown below.

(a and b)    A physical count shows merchandise inventory costing $45,000 on hand as of December 31, 20--. Neff uses the periodic inventory system.

(c)    Supplies remaining at the end of the year, $600.

(d)    Unexpired insurance on December 31, $900.

(e)    Depreciation expense on the building for 20--, $6,000.

(f)    Depreciation expense on the store equipment for 20--, $4,500.

(g)    Wages earned but not paid as of December 31, $675.

(h)    Unearned boat rental revenue as of December 31, $3,000.

REQUIRED

1. 1. Prepare a year-end work sheet.
2. 2. Journalize the adjusting entries.