Basket Corner
UNADJUSTED TRIAL BALANCE
December 31, 20--
ACCOUNT TITLE
DEBIT
CREDIT
1
Cash
24,000.00
2
Accounts Receivable
16,800.00
3
Merchandise Inventory
90,000.00
4
Estimated Returns Inventory
3,840.00
5
Supplies
9,600.00
6
Prepaid Insurance
6,480.00
7
Land
156,000.00
8
Building
300,000.00
9
Accumulated Depreciation-Building
120,000.00
10
Store Equipment
120,000.00
11
Accumulated Depreciation-Store Equipment
48,000.00
12
Accounts Payable
11,520.00
13
Customer Refunds Payable
4,200.00
14
Wages Payable
0.00
15
Sales Tax Payable
7,080.00
16
Unearned Rent Revenue
10,680.00
17
L. Palermo, Capital
341,172.00
18
L. Palermo, Drawing
31,200.00
19
Income Summary
0.00
20
Sales
630,168.00
21
Sales Returns and Allowances
17,400.00
22
Rent Revenue
0.00
23
Purchases
150,000.00
24
Purchases Returns and Allowances
1,680.00
25
Purchases Discounts
2,160.00
26
Freight-In
2,520.00
27
Wages Expense
150,000.00
28
Advertising Expense
15,600.00
29
Supplies Expense
0.00
30
Phone Expense
1,620.00
31
Utilities Expense
9,600.00
32
Insurance Expense
0.00
33
Depreciation Expense-Building
0.00
34
Depreciation Expense-Store Equipment
0.00
35
Rent Expense
72,000.00
36
Totals
1,176,660.00
1,176,660.00
Year-end adjustment information is provided below.
(a, b)
A physical count shows that merchandise inventory costing $102,000 is on hand as of December 31, 20--.
(c, d, e)
Palermo estimates that customers will be granted $6,840 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of $5,160.
(f)
Supplies remaining at the end of the year, $3,960.
(g)
Unexpired insurance on December 31, $4,560.
(h)
Depreciation expense on the building for 20--, $15,000.
(i)
Depreciation expense on the store equipment for 20--, $6,000.
(j)
Unearned rent revenue as of December 31, $5,400.
(k)
Wages earned but not paid as of December 31, $4,200.
Required:
1.
Complete the Adjustments columns.
2.
Complete the spreadsheet.
3.
Enter the adjustments in a general journal.