Chapter 3, Problem 2R

The trial balance of Sports Connection at June 30, 2013, the end of the current fiscal year, is as follows:

Adjustment information is as follows:

1. a. Supplies on hand as of June 30, 2013, $450.
2. b. Insurance premiums that expired during the year, $2,420.
3. c. Depreciation on equipment during the year, $1,500.
4. d. Included in the rent expense of $30,000 is $1,200 that is prepaid for July 2013.
5. e. Salaries accrued but not paid at June 30, 2013, $1,440.
6. f. Merchandise inventory on June 30, 2013, $68,864.

Open the file P2WORK from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then enter the adjusting amounts in columns E and G. Also, in column D or F, insert the letter corresponding to the adjusting entry (a–e). (Note: Not all textbooks handle the change in inventory as an adjustment. Use the method for handling inventory that is prescribed in your textbook.) Column A is “frozen” on the screen to assist you in completing requirement 3.