Chapter 14, Problem 9SPB

COMPLETION OF A WORK SHEET SHOWING A NET INCOME A trial balance for the Bosket Corner, a business owned by Linda Palermo, is shown on page 557. Year-end adjustment information is provided below.

(a and b)    Merchandise inventory costing $24,000 is on hand as of December 31, 20--.

(The periodic inventory system is used.)

(c)    Supplies remaining at the end of the year; $2,100.

(d)    Unexpired insurance on December 31, $2,600.

(e)    Depreciation expense on the building foe 20--, $5,300.

(f)    Depreciation expense on the store equipment for 20--, $3,800.

(g)    Unearned decorating revenue as of December 31, $1,650.

(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 a general journal.