Chapter 14, Problem 9SPA

COMPLETION OF A WORK SHEET SHOWING A NET INCOME The trial balance for the Venice Beach Kite Shop, a business owned by Molly Young k shown on page 550. Year-end adjustment information is as follows:

(a and b)    Merchandise inventory costing $35,000 is on hand as of December .31, 20--. (The periodic inventory system is used.)

(c)    Supplies remaining at the end of the year, $3,300.

(d)    Unexpired insurance on December 31, S3,800.

(e)    Depreciation expense on the building foe 20--, $2,500.

(f)    Depreciation expense on the store equipment for 20--, $3,500.

(g)    Unearned rent revenue as of December 31, $4,00.

(h)    Wages earned but not paid as of December 31, $800.

1. 1. Complete the Adjustments columns, identifying each adjustment with its corresponding letter.
2. 2. Complete the work sheet.
3. 3. Enter the adjustments m a general journal.