CHAPTER 11
Work Sheet and Adjusting Entries
DISCUSSION QUESTIONS
Suggested Responses
1.
A physical inventory is a count of the goods on hand as of a specific date. The word
periodic means that a physical count is made at the end of certain periods, such as the
end of the fiscal period.
2.
The figure of $126,220 represents the beginning inventory.
3.
Under the perpetual inventory system, when the physical count of inventory is greater
than the recorded amount, Merchandise Inventory is debited.
4.
The amount listed as Income Summary in the Income Statement Credit column is the
ending merchandise inventory.
5.
Unearned revenue represents amounts received in advance for either goods to be
delivered later or services to be rendered later. Unearned revenue is treated as a
liability because the company’s customers have a claim against it until the goods are
actually delivered or the services are rendered.
6.
The reason for adjusting the Merchandise Inventory account is that both the
beginning and the ending amounts appear as distinct figures in the Income Statement
columns of a work sheet, and these columns are used as the basis for preparing the
income statement.
7.
a.
Supplies
Supplies Expense
b.
8.
3,638
3,638
$8,842 bought – $3,638 left = $5,204 used or expired
Unearned Rent
Rental Income
68,000
68,000
SOLUTIONS TO EXERCISES
Exercise 11-1
Apr.
7
Bought supplies for $290.
May
30
Bought supplies for $420.
Nov.
19
Bought supplies for $315.
Dec.
16
Returned supplies, receiving a credit of $186.
18
Bought supplies for $571.
31
Adjusted the amount of Supplies Expense by crediting Supplies
Expense for $1,470 and debiting Supplies for $1,470—the amount
left in supplies inventory.
Oct.
15
Recorded sale of season tickets for cash, $36,780.
Nov.
1
Recorded sale of season tickets for cash, $42,600.
Dec.
31
Exercise 11-2
584
Made the adjusting entry to record season ticket income earned,
$43,125.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Exercise 11-3
GENERAL JOURNAL
a.
DATE
1
2
3
20-Dec.
a.
PAGE
POST.
REF.
DESCRIPTION
DEBIT
Adjusting Entries
31 Unearned Admissions
Admissions Income
CREDIT
1
300,000.00
2
300,000.00
3
4
4
5
5
b.
Admissions Income, $750,000 ($450,000 + $300,000).
c.
Unearned Admissions, $500,000 ($800,000 – $300,000).
Exercise 11-4
Merchandise Inventory
Bal.
(b)
241,072
256,339
(a)
Income Summary
241,072
(a)
241,072
(b)
256,339
Exercise 11-5
a.
F. Dexter, Drawing—Balance Sheet Debit
b.
Advertising Expense—Income Statement Debit
c.
Merchandise Inventory (ending)—Balance Sheet Debit
d.
Purchases Discounts—Income Statement Credit
e.
Unearned Fees—Balance Sheet Credit
f.
Sales Returns and Allowances—Income Statement Debit
g.
Accumulated Depreciation, Building—Balance Sheet Credit
h.
Income Summary—Income Statement Debit and Credit
i.
Fees Income—Income Statement Credit
j.
Prepaid Rent—Balance Sheet Debit
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
585
CHAPTER 11
Work Sheet and Adjusting Entries
Exercise 11-6
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
(a)
DESCRIPTION
Adjusting Entries
31 Income Summary
Merchandise Inventory
PAGE
POST.
REF.
DEBIT
CREDIT
1
18,368.00
2
18,368.00
4
5
4
(b)
6
31 Merchandise Inventory
Income Summary
19,342.00
5
19,342.00
7
8
(c)
9
31 Insurance Expense
Prepaid Insurance
700.00
8
700.00
(d)
31 Advertising Expense
Prepaid Advertising
270.00
11
270.00
13
12
13
(e)
15
31 Unearned Membership Fees
Membership Fees Income
7,800.00
14
7,800.00
16
15
16
(f)
17
18
19
31 Depreciation Expense, Equipment
Accumulated Depreciation,
Equipment
825.00
31 Wages Expense
Wages Payable
460.00
17
18
825.00
20
21
9
10
12
14
6
7
10
11
3
19
20
(g)
22
23
21
460.00
22
23
586
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Exercise 11-7
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
(a)
DESCRIPTION
PAGE
POST.
REF.
Adjusting Entries
31 Income Summary
Merchandise Inventory
DEBIT
CREDIT
1
202,839.00
2
202,839.00
4
5
4
(b)
6
31 Merchandise Inventory
Income Summary
199,830.00
5
199,830.00
7
8
(c)
9
31 Unearned Subscriptions
Subscriptions Income
103,120.00
8
103,120.00
(d)
13
31 Depreciation Expense, Equipment
Accumulated Depreciation,
Equipment
12,300.00
11
12
12,300.00
14
31 Insurance Expense
Prepaid Insurance
1,612.00
31 Rent Expense
Prepaid Rent
1,800.00
31 Salary Expense
Salaries Payable
2,400.00
15
1,612.00
17
16
17
(f)
19
18
1,800.00
20
21
13
14
(e)
16
18
9
10
12
15
6
7
10
11
3
19
20
(g)
22
21
2,400.00
23
22
23
Exercise 11-8
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
DESCRIPTION
Adjusting Entries
31 Cost of Goods Sold
Merchandise Inventory
PAGE
POST.
REF.
DEBIT
CREDIT
1
2,642.00
2
2,642.00
3
4
4
5
5
6
6
7
7
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
587
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-1A
Hadden Company
Work Sheet
For Year Ended December 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Cash
Merchandise Inventory
Prepaid Insurance
Store Equipment
Accumulated Depreciation, Store Equipment
Accounts Payable
Sales Tax Payable
R. M. Hadden, Capital
R. M. Hadden, Drawing
Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Purchases Discounts
Freight In
Salary Expense
Rent Expense
Store Supplies Expense
Miscellaneous Expense
20
21
22
23
24
25
DEBIT
CREDIT
9,246.52
63,674.80
1,420.00
36,230.00
22,726.00
13,196.96
1,236.98
56,339.32
28,000.00
175,864.31
1,573.72
77,300.04
1,744.32
1,413.62
2,427.00
35,458.85
14,600.00
1,466.34
1,124.24
272,521.51
272,521.51
Income Summary
Store Supplies
Insurance Expense
Salaries Payable
Depreciation Expense, Store Equipment
26
27
Net Income
28
29
30
31
32
33
34
35
588
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-1A (concluded)
ADJUSTMENTS
DEBIT
(b)
INCOME STATEMENT
CREDIT
64,742.80 (a)
(d)
(f)
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
9,246.52
64,742.80
682.00
36,230.00
63,674.80
738.00
3,620.00
1
2
3
4
26,346.00
13,196.96
1,236.98
56,339.32
28,000.00
420.20
8
11
12
1,744.32
1,413.62
(c)
7
10
1,573.72
77,300.04
684.50
6
9
175,864.31
(e)
5
13
14
2,427.00
36,143.35
14,600.00
1,046.14
1,124.24
15
16
17
18
19
20
(a)
(c)
(d)
(f)
63,674.80 (b)
420.20
738.00
(e)
3,620.00
133,880.30
64,742.80
63,674.80
64,742.80
21
420.20
22
738.00
23
684.50
133,880.30
684.50
3,620.00
202,247.29
41,517.76
243,765.05
24
25
243,765.05
139,321.52
243,765.05
139,321.52
97,803.76
41,517.76
139,321.52
26
27
28
29
30
31
32
33
34
35
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
589
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-2A
Beldren Home Center
Work Sheet
For Year Ended December 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Store Equipment
Accumulated Depreciation, Store Equipment
Office Equipment
Accumulated Depreciation, Office Equipment
Notes Payable
Accounts Payable
Unearned Rent
A. P. Beldren, Capital
A. P. Beldren, Drawing
Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Purchases Discounts
Freight In
Wages Expense
Supplies Expense
Interest Expense
23
24
25
26
27
28
29
30
DEBIT
CREDIT
10,592.00
43,962.00
120,838.00
2,628.00
35,924.00
29,420.00
10,436.00
1,720.00
5,000.00
29,822.00
3,200.00
120,532.00
29,000.00
653,000.00
9,748.00
519,374.00
12,440.00
8,634.00
24,724.00
54,200.00
1,570.00
772.00
863,768.00
863,768.00
Income Summary
Wages Payable
Supplies
Depreciation Expense, Store Equipment
Depreciation Expense, Office Equipment
Insurance Expense
Rent Income
31
32
Net Income
33
34
35
590
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-2A (continued)
ADJUSTMENTS
DEBIT
(b)
INCOME STATEMENT
CREDIT
102,765.00 (a)
(g)
120,838.00
845.00
(e)
5,782.00
(f)
1,791.00
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
10,592.00
43,962.00
102,765.00
1,783.00
35,924.00
1
2
3
4
5
35,202.00
10,436.00
(h)
7
3,511.00
5,000.00
29,822.00
700.00
120,532.00
2,500.00
29,000.00
645.00
10
11
12
15
16
12,440.00
8,634.00
(d)
9
14
9,748.00
519,374.00
1,834.00
8
13
653,000.00
(c)
6
17
18
24,724.00
56,034.00
925.00
772.00
19
20
21
22
23
(a)
(d)
(e)
(f)
(g)
120,838.00 (b)
(c)
645.00
5,782.00
1,791.00
845.00
(h)
237,000.00
102,765.00
1,834.00
120,838.00
102,765.00
24
1,834.00
645.00
26
5,782.00
1,791.00
845.00
2,500.00
237,000.00
740,833.00
38,506.00
779,339.00
25
27
28
29
2,500.00
779,339.00
779,339.00
30
235,107.00
235,107.00
196,601.00
38,506.00
235,107.00
31
32
33
34
35
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
591
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-2A (concluded)
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
(a)
DESCRIPTION
Adjusting Entries
31 Income Summary
Merchandise Inventory
PAGE
POST.
REF.
DEBIT
16
CREDIT
1
120,838.00
2
120,838.00
4
5
4
(b)
6
31 Merchandise Inventory
Income Summary
102,765.00
5
102,765.00
7
8
(c)
31 Wages Expense
Wages Payable
1,834.00
8
1,834.00
10
31 Supplies
Supplies Expense
645.00
11
645.00
13
(e)
16
31 Depreciation Expense, Store Equipment
Accumulated Depreciation, Store
Equipment
5,782.00
31 Depreciation Expense, Office Equipment
Accumulated Depreciation, Office
Equipment
1,791.00
14
15
5,782.00
17
16
17
(f)
18
19
20
18
19
1,791.00
21
20
21
(g)
23
31 Insurance Expense
Prepaid Insurance
845.00
22
845.00
24
25
12
13
15
22
9
10
(d)
12
14
6
7
9
11
3
23
24
(h)
26
31 Unearned Rent
Rent Income
2,500.00
25
2,500.00
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
592
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-3A
GENERAL JOURNAL
1.
DATE
20-Dec.
1
2
3
POST.
REF.
DESCRIPTION
Adjusting Entries
31 Income Summary
Merchandise Inventory
41
PAGE
DEBIT
CREDIT
1
65,680.00
2
65,680.00
4
3
4
31 Merchandise Inventory
Income Summary
5
6
76,940.00
5
76,940.00
7
6
7
31 Depreciation Expense, Store Equipment
Accumulated Depreciation, Store
Equipment
8
9
10
4,040.00
8
9
4,040.00
11
10
11
12
13
31 Insurance Expense
Prepaid Insurance
760.00
31 Supplies
Supplies Expense
256.00
31 Salary Expense
Salaries Payable
560.00
12
760.00
14
13
14
15
16
15
256.00
17
16
17
18
19
18
560.00
19
20
20
21
21
22
22
23
23
24
24
25
25
26
26
2.
Net Income: $43,336
Total revenue (including ending inventory)
Less total expenses (including beginning inventory)
$252,900
209,564
$ 43,336
Net income
3.
S. R. Rodriguez, Capital: $84,676
Beginning capital
Net income
Less withdrawals
Increase in capital
Ending capital
$68,940
$43,336
27,600
15,736
$84,676
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
593
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-4A
Misha's Jewel Box
Work Sheet
For Year Ended December 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Land
Building
Accumulated Depreciation, Building
Store Equipment
Accumulated Depreciation, Store Equipment
Accounts Payable
Sales Tax Payable
Mortgage Payable
M. Beloit, Capital
M. Beloit, Drawing
Sales
Sales Returns and Allowances
Cost of Goods Sold
Salary Expense
Advertising Expense
Store Supplies Expense
Utilities Expense
Property Tax Expense
Miscellaneous Expense
Interest Expense
25
26
27
28
29
30
DEBIT
CREDIT
13,242.00
3,984.00
126,540.00
2,655.00
18,000.00
97,000.00
38,240.00
46,170.00
16,250.00
8,270.00
2,371.00
77,871.00
185,000.00
48,000.00
379,354.00
3,892.00
279,198.00
54,400.00
3,526.00
2,484.00
2,538.00
1,162.00
1,613.00
2,952.00
707,356.00
707,356.00
Store Supplies
Depreciation Expense, Building
Depreciation Expense, Store Equipment
Salaries Payable
Insurance Expense
31
32
Net Income
33
34
35
594
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-4A (continued)
ADJUSTMENTS
DEBIT
INCOME STATEMENT
CREDIT
(a)
(b)
(c)
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
13,242.00
3,984.00
124,630.00
1,361.00
18,000.00
97,000.00
1,910.00
1,294.00
3,300.00
1
2
3
4
5
6
41,540.00
46,170.00
(d)
6,470.00
8
22,720.00
8,270.00
2,371.00
77,871.00
185,000.00
48,000.00
1,910.00
2,470.00
(f)
1,959.00
9
10
11
12
13
14
379,354.00
(a)
(e)
7
15
3,892.00
281,108.00
56,870.00
3,526.00
525.00
2,538.00
1,162.00
1,613.00
2,952.00
16
17
18
19
20
21
22
23
24
25
(f)
(c)
(d)
1,959.00
3,300.00
6,470.00
(b)
1,294.00
17,403.00
1,959.00
26
3,300.00
6,470.00
(e)
27
28
2,470.00
17,403.00
2,470.00
1,294.00
365,250.00
14,104.00
379,354.00
29
30
379,354.00
379,354.00
354,346.00
354,346.00
340,242.00
14,104.00
354,346.00
31
32
33
34
35
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
595
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-4A (concluded)
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
(a)
DESCRIPTION
Adjusting Entries
31 Cost of Goods Sold
Merchandise Inventory
PAGE
POST.
REF.
DEBIT
63
CREDIT
1
1,910.00
2
1,910.00
4
5
4
(b)
6
31 Insurance Expense
Prepaid Insurance
1,294.00
31 Depreciation Expense, Building
Accumulated Depreciation, Building
3,300.00
31 Depreciation Expense, Store Equipment
Accumulated Depreciation, Store
Equipment
6,470.00
31 Salary Expense
Salaries Payable
2,470.00
31 Store Supplies
Store Supplies Expense
1,959.00
5
1,294.00
7
8
9
8
3,300.00
9
10
(d)
12
13
11
12
6,470.00
14
15
6
7
(c)
10
11
3
13
14
(e)
16
15
2,470.00
17
16
17
(f)
18
19
18
1,959.00
19
20
20
21
21
22
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
596
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CHAPTER 11
Work Sheet and Adjusting Entries
NOTES AND CALCULATIONS
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
597
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-1B
Jillson Company
Work Sheet
For Year Ended December 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Cash
Merchandise Inventory
Prepaid Insurance
Store Equipment
Accumulated Depreciation, Store Equipment
Accounts Payable
Sales Tax Payable
G. L. Jillson, Capital
G. L. Jillson, Drawing
Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Purchases Discounts
Freight In
Salary Expense
Rent Expense
Store Supplies Expense
Miscellaneous Expense
20
21
22
23
24
25
DEBIT
CREDIT
18,463.92
47,356.00
1,660.00
26,580.00
15,320.00
25,578.80
1,243.36
75,630.00
28,440.00
92,026.74
1,542.04
43,348.45
1,748.09
1,987.90
2,775.00
25,758.80
15,300.00
1,321.12
989.56
213,534.89
213,534.89
Income Summary
Store Supplies
Insurance Expense
Salaries Payable
Depreciation Expense, Store Equipment
26
27
Net Income
28
29
30
31
32
33
34
35
36
598
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-1B (concluded)
ADJUSTMENTS
DEBIT
(b)
INCOME STATEMENT
CREDIT
54,845.00 (a)
(d)
(f)
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
18,463.92
54,845.00
980.00
26,580.00
47,356.00
680.00
3,760.00
1
2
3
4
19,080.00
25,578.80
1,243.36
75,630.00
28,440.00
488.50
8
11
12
1,748.09
1,987.90
(c)
7
10
1,542.04
43,348.45
692.00
6
9
92,026.74
(e)
5
13
14
2,775.00
26,450.80
15,300.00
832.62
989.56
15
16
17
18
19
20
(a)
(c)
(d)
(f)
47,356.00 (b)
488.50
680.00
(e)
3,760.00
107,821.50
54,845.00
47,356.00
54,845.00
21
488.50
22
680.00
23
692.00
107,821.50
692.00
3,760.00
143,034.47
7,573.26
150,607.73
24
25
150,607.73
129,797.42
150,607.73
129,797.42
122,224.16
7,573.26
129,797.42
26
27
28
29
30
31
32
33
34
35
36
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
599
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-2B
Pelango Furniture
Work Sheet
For Year Ended December 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Store Equipment
Accumulated Depreciation, Store Equipment
Office Equipment
Accumulated Depreciation, Office Equipment
Notes Payable
Accounts Payable
Unearned Rent
L. Pelango, Capital
L. Pelango, Drawing
Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Purchases Discounts
Freight In
Wages Expense
Supplies Expense
Interest Expense
23
24
25
26
27
28
29
30
DEBIT
CREDIT
12,482.00
38,962.00
118,628.00
2,488.00
32,824.00
26,420.00
11,236.00
3,410.00
6,000.00
23,420.00
3,150.00
120,532.00
28,000.00
647,090.00
8,848.00
519,374.00
12,440.00
8,634.00
22,824.00
52,800.00
1,850.00
780.00
851,096.00
851,096.00
Income Summary
Wages Payable
Insurance Expense
Supplies
Depreciation Expense, Store Equipment
Depreciation Expense, Office Equipment
Rent Income
31
32
Net Income
33
34
35
600
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-2B (continued)
ADJUSTMENTS
DEBIT
(b)
INCOME STATEMENT
CREDIT
104,565.00 (a)
(g)
118,628.00
935.00
(e)
4,982.00
(f)
1,531.00
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
12,482.00
38,962.00
104,565.00
1,553.00
32,824.00
1
2
3
4
5
31,402.00
11,236.00
(h)
7
4,941.00
6,000.00
23,420.00
700.00
120,532.00
2,450.00
28,000.00
755.00
10
11
12
15
16
12,440.00
8,634.00
(d)
9
14
8,848.00
519,374.00
934.00
8
13
647,090.00
(c)
6
17
18
22,824.00
53,734.00
1,095.00
780.00
19
20
21
22
23
(a)
(g)
(d)
(e)
(f)
118,628.00 (b)
(c)
935.00
755.00
4,982.00
1,531.00
(h)
234,780.00
104,565.00
934.00
118,628.00
104,565.00
24
934.00
935.00
26
755.00
27
4,982.00
1,531.00
2,450.00
234,780.00
732,731.00
42,448.00
775,179.00
25
28
29
2,450.00
775,179.00
775,179.00
30
230,377.00
230,377.00
187,929.00
42,448.00
230,377.00
31
32
33
34
35
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
601
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-2B (concluded)
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
(a)
DESCRIPTION
Adjusting Entries
31 Income Summary
Merchandise Inventory
PAGE
POST.
REF.
DEBIT
16
CREDIT
1
118,628.00
2
118,628.00
4
5
4
(b)
6
31 Merchandise Inventory
Income Summary
104,565.00
5
104,565.00
7
8
(c)
31 Wages Expense
Wages Payable
934.00
31 Supplies
Supplies Expense
755.00
8
934.00
10
11
755.00
13
(e)
16
31 Depreciation Expense, Store Equipment
Accumulated Depreciation, Store
Equipment
4,982.00
31 Depreciation Expense, Office Equipment
Accumulated Depreciation, Office
Equipment
1,531.00
14
15
4,982.00
17
16
17
(f)
18
19
20
18
19
1,531.00
21
20
21
(g)
23
31 Insurance Expense
Prepaid Insurance
935.00
22
935.00
24
25
12
13
15
22
9
10
(d)
12
14
6
7
9
11
3
23
24
(h)
26
31 Unearned Rent
Rent Income
2,450.00
25
2,450.00
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
602
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-3B
GENERAL JOURNAL
1.
DATE
20-Dec.
1
2
3
POST.
REF.
DESCRIPTION
Adjusting Entries
31 Income Summary
Merchandise Inventory
41
PAGE
DEBIT
CREDIT
1
68,228.00
2
68,228.00
4
3
4
31 Merchandise Inventory
Income Summary
5
6
74,298.00
5
74,298.00
7
6
7
31 Depreciation Expense, Store Equipment
Accumulated Depreciation, Store
Equipment
8
9
10
4,360.00
8
9
4,360.00
11
10
11
12
13
31 Insurance Expense
Prepaid Insurance
552.00
31 Supplies
Supplies Expense
298.00
31 Salary Expense
Salaries Payable
588.00
12
552.00
14
13
14
15
16
15
298.00
17
16
17
18
19
18
588.00
19
20
20
21
21
22
22
23
23
24
24
25
25
26
26
2.
Net Income: $32,412
Total revenue (including ending inventory)
Less total expenses (including beginning inventory)
$248,714
216,302
$ 32,412
Net income
3.
O. B. Habib, Capital: $76,754
Beginning capital
Net income
Less withdrawals
Increase in capital
Ending capital
$75,142
$32,412
30,800
1,612
$76,754
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
603
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-4B
Markey's Mountain Shop
Work Sheet
For Year Ended December 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Land
Building
Accumulated Depreciation, Building
Store Equipment
Accumulated Depreciation, Store Equipment
Notes Payable
Accounts Payable
Sales Tax Payable
B. Markey, Capital
B. Markey, Drawing
Sales
Sales Returns and Allowances
Cost of Goods Sold
Salary Expense
Advertising Expense
Utilities Expense
Store Supplies Expense
Property Tax Expense
Miscellaneous Expense
Interest Expense
25
26
27
28
29
30
DEBIT
CREDIT
12,840.00
3,242.00
137,757.00
2,845.00
22,000.00
86,000.00
36,940.00
54,952.00
13,348.00
10,500.00
18,540.00
5,706.00
171,000.00
52,000.00
458,905.00
7,590.00
265,315.00
52,973.00
6,288.00
7,355.00
1,530.00
800.00
775.00
677.00
714,939.00
714,939.00
Insurance Expense
Depreciation Expense, Building
Depreciation Expense, Store Equipment
Salaries Payable
Store Supplies
31
32
Net Income
33
34
35
604
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-4B (continued)
ADJUSTMENTS
DEBIT
(a)
INCOME STATEMENT
CREDIT
DEBIT
CREDIT
(c)
CREDIT
12,840.00
3,242.00
140,357.00
1,365.00
22,000.00
86,000.00
2,600.00
(f)
BALANCE SHEET
DEBIT
1,480.00
3,400.00
1
2
3
4
5
6
40,340.00
54,952.00
(d)
3,800.00
8
17,148.00
10,500.00
18,540.00
5,706.00
171,000.00
52,000.00
(e)
2,600.00
1,250.00
(b)
540.00
9
10
11
12
13
14
458,905.00
(a)
7
15
7,590.00
262,715.00
54,223.00
6,288.00
7,355.00
990.00
800.00
775.00
677.00
16
17
18
19
20
21
22
23
24
25
(f)
(c)
(d)
1,480.00
3,400.00
3,800.00
(b)
540.00
13,070.00
1,480.00
3,400.00
3,800.00
(e)
26
27
28
1,250.00
13,070.00
1,250.00
350,093.00
108,812.00
458,905.00
458,905.00
458,905.00
540.00
373,296.00
373,296.00
29
30
264,484.00
108,812.00
373,296.00
31
32
33
34
35
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
605
CHAPTER 11
Work Sheet and Adjusting Entries
Problem 11-4B (concluded)
GENERAL JOURNAL
DATE
1
2
3
20-Dec.
(a)
DESCRIPTION
Adjusting Entries
31 Merchandise Inventory
Cost of Goods Sold
PAGE
POST.
REF.
DEBIT
63
CREDIT
1
2,600.00
2
2,600.00
4
5
4
(b)
6
31 Store Supplies
Store Supplies Expense
540.00
5
540.00
7
8
9
31 Depreciation Expense, Building
Accumulated Depreciation, Building
3,400.00
31 Depreciation Expense, Store Equipment
Accumulated Depreciation, Store
Equipment
3,800.00
31 Salary Expense
Salaries Payable
1,250.00
31 Insurance Expense
Prepaid Insurance
1,480.00
8
3,400.00
13
11
12
3,800.00
14
13
14
(e)
16
15
1,250.00
17
18
9
10
(d)
12
15
6
7
(c)
10
11
3
16
17
(f)
19
18
1,480.00
19
20
20
21
21
22
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
606
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
SOLUTIONS TO ACTIVITIES
CONSIDER AND COMMUNICATE
Suggested Response
If revenue for one job is earned over two fiscal periods but is recorded in only one, then
revenue and net income for the period in which it is recorded will be overstated, and
revenue and net income for the second period will be understated. The Unearned
Revenue account is a liability. It is used for revenue that has been collected but not yet
earned.
WHAT’S WRONG WITH THIS PICTURE?
Suggested Response
Nothing, if the business has the funds necessary to perform the services promised when
the services are due. This practice is not at all uncommon—for example, cruise ships
collect fees 45 to 60 days in advance of the cruise. It is probable that these prepaid fees
are being used to finance all or part of earlier cruises. A problem arises when a business
is losing money and is unable to produce the services for which it has already been paid.
CRITICAL THINKING
Suggested Response
Unearned revenue is cash received in advance (as for season tickets for plays or for sporting
events). The revenue may not be fully earned by the end of the current fiscal period. The
amount initially should be recorded in a liability account called Unearned Painting Income.
If it is recorded in Painting Income, the interim income statements, say for the month of
November, will reflect too much income, not all of which has been earned. The interim
balance sheet will not reflect the liability Unearned Painting Income. After adjustments are
made (whether the amount was initially recorded correctly or not), the totals will be the
same.
A QUESTION OF ETHICS
Suggested Response
It is not unethical to try out products in order to become familiar with them, but the ones
that are tried out should be sold as demonstration models. If they are not returned and
accounted for, this will cause the adjustment to merchandise inventory to be inaccurate.
In addition, the goods may have become absorbed into the personal life of the owner’s
family and fail to be accounted for in the business’s merchandise inventory. The owner
should take the bicycles as a drawing, which would be the ethical and accurate way to
handle this situation.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
607
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA: Work Sheet and Adjusting Entries
All About You Spa
Work Sheet
For Three Months Ended August 31, 20-TRIAL BALANCE
ACCOUNT NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Cash
Accounts Receivable
Prepaid Insurance
Spa Equipment
Accumulated Depreciation, Spa Equipment
Office Equipment
Accumulated Depreciation, Office Equipment
Accounts Payable
Sales Tax Payable
A. Valli, Capital
A. Valli, Drawing
Income from Services
Merchandise Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Freight In
Wages Expense
Rent Expense
Office Supplies Expense
Spa Supplies Expense
Laundry Expense
Advertising Expense
Utilities Expense
Miscellaneous Expense
26
27
28
29
30
31
32
33
DEBIT
CREDIT
40,361.74
7,196.63
800.00
18,083.00
64.88
1,570.00
10.00
20,393.00
2,001.12
49,884.62
5,000.00
25,398.00
22,489.65
88.00
24,101.00
123.00
992.00
16,250.00
3,300.00
118.00
535.00
179.00
455.00
963.00
371.90
120,364.27
120,364.27
Income Summary
Merchandise Inventory
Spa Supplies
Office Supplies
Insurance Expense
Depreciation Expense, Spa Equipment
Depreciation Expense, Office Equipment
34
35
Net Income
36
37
608
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ADJUSTMENTS
DEBIT
INCOME STATEMENT
CREDIT
(d)
(e)
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
40,361.74
7,196.63
518.33
18,083.00
281.67
1
2
3
4
129.76
194.64
1,570.00
(f)
20.00
6
30.00
20,393.00
2,001.12
49,884.62
5,000.00
8
9
10
12
13
88.00
24,101.00
14
15
123.00
75.00
345.00
7
11
25,398.00
22,489.65
(b)
(c)
5
16
992.00
16,250.00
3,300.00
43.00
190.00
179.00
455.00
963.00
371.90
17
18
19
20
21
22
23
24
25
26
(a)
(a)
(c)
(b)
(d)
(e)
(f)
13,110.00
345.00
75.00
281.67
129.76
20.00
13,961.43
13,110.00
13,110.00
27
13,110.00
345.00
75.00
13,961.43
281.67
129.76
20.00
47,364.33
13,756.32
61,120.65
28
29
30
31
32
33
61,120.65
86,259.70
61,120.65
86,259.70
72,503.38
13,756.32
86,259.70
34
35
36
37
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
609
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
GENERAL JOURNAL
DATE
1
2
3
20-Aug.
(a)
DESCRIPTION
Adjusting Entries
31 Merchandise Inventory
Income Summary
POST.
REF.
PAGE
DEBIT
16
CREDIT
1
116
399
13,110.00
2
13,110.00
4
5
4
(b)
6
31 Office Supplies
Office Supplies Expense
115
613
75.00
31 Spa Supplies
Spa Supplies Expense
114
614
345.00
31 Insurance Expense
Prepaid Insurance
618
117
281.67
5
75.00
7
8
8
345.00
10
9
10
(d)
12
11
281.67
13
14
6
7
(c)
9
11
3
12
13
(e)
15
16
17
31 Depreciation Expense, Spa
Equipment
Accumulated Depreciation, Spa
Equipment
14
619
129.76
15
16
125
129.76
18
17
18
(f)
19
20
21
22
31 Depreciation Expense, Office
Equipment
Accumulated Depreciation, Office
Equipment
19
620
20.00
20
21
129
20.00
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
610
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
GENERAL LEDGER
ACCOUNT
Cash
ITEM
DATE
20—
Aug.
ACCOUNT
31
Balance
ACCOUNT
ITEM
31
Balance
ACCOUNT
ITEM
31
Adj.
ACCOUNT
31
Adj.
20-Aug.
CREDIT
9
31
Adj.
CREDIT
7,196.63
POST.
REF.
CREDIT
345.00
DEBIT
CREDIT
345.00
J16
115
BALANCE
DEBIT
CREDIT
75.00
DEBIT
CREDIT
75.00
ACCOUNT NO.
POST.
REF.
114
BALANCE
DEBIT
ACCOUNT NO.
J16
ITEM
DEBIT
ACCOUNT NO.
POST.
REF.
113
BALANCE
DEBIT
Merchandise Inventory
DATE
CREDIT
ACCOUNT NO.
J16
ITEM
DEBIT
40,361.74
Office Supplies
DATE
20-Aug.
CREDIT
9
POST.
REF.
111
BALANCE
DEBIT
Spa Supplies
DATE
20-Aug.
POST.
REF.
Accounts Receivable
DATE
20—
Aug.
ACCOUNT NO.
116
BALANCE
DEBIT
13,110.00
CREDIT
DEBIT
CREDIT
13,110.00
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
611
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ACCOUNT
Prepaid Insurance
DATE
20—
Aug.
ACCOUNT
ITEM
31
31
ACCOUNT
ITEM
31
ACCOUNT
ACCOUNT
31
31
ACCOUNT
612
Balance
Adj.
ITEM
31
281.67
Balance
ITEM
31
31
Balance
Adj.
31
Balance
CREDIT
800.00
518.33
CREDIT
9
POST.
REF.
DEBIT
CREDIT
18,083.00
ACCOUNT NO.
CREDIT
DEBIT
CREDIT
64.88
194.64
129.76
ACCOUNT NO.
CREDIT
DEBIT
CREDIT
1,570.00
ACCOUNT NO.
CREDIT
DEBIT
CREDIT
10.00
30.00
20.00
ACCOUNT NO.
9
129
BALANCE
DEBIT
9
J11
POST.
REF.
128
BALANCE
DEBIT
9
POST.
REF.
125
BALANCE
DEBIT
9
J16
POST.
REF.
124
BALANCE
DEBIT
Accounts Payable
ITEM
DEBIT
ACCOUNT NO.
Accumulated Depreciation, Office Equipment
DATE
20—
Aug.
CREDIT
Office Equipment
DATE
20—
Aug.
Balance
ITEM
DATE
20—
Aug.
9
J16
POST.
REF.
117
BALANCE
DEBIT
Accumulated Depreciation, Spa Equipment
DATE
20—
Aug.
POST.
REF.
Spa Equipment
DATE
20—
Aug.
Balance
Adj.
ACCOUNT NO.
211
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20,393.00
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ACCOUNT
Wages Payable
DATE
ACCOUNT
ITEM
ACCOUNT
ITEM
31
Balance
ACCOUNT
ITEM
31
Balance
ACCOUNT
ITEM
31
Balance
20-Aug.
ACCOUNT
ITEM
31
Adj.
31
Balance
DEBIT
CREDIT
ACCOUNT NO.
POST.
REF.
CREDIT
DEBIT
CREDIT
49,884.62
ACCOUNT NO.
CREDIT
DEBIT
CREDIT
5,000.00
ACCOUNT NO.
313
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
13,110.00
13,110.00
ACCOUNT NO.
POST.
REF.
312
BALANCE
DEBIT
9
POST.
REF.
311
BALANCE
DEBIT
9
POST.
REF.
215
2,001.12
J16
ITEM
CREDIT
9
Income from Services
DATE
20—
Aug.
CREDIT
Income Summary
DATE
DEBIT
BALANCE
DEBIT
A. Valli, Drawing
DATE
20—
Aug.
CREDIT
ACCOUNT NO.
POST.
REF.
212
BALANCE
DEBIT
A. Valli, Capital
DATE
20—
Aug.
POST.
REF.
Sales Tax Payable
DATE
20—
Aug.
ACCOUNT NO.
411
BALANCE
DEBIT
CREDIT
DEBIT
9
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CREDIT
25,398.00
613
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ACCOUNT
Merchandise Sales
DATE
20—
Aug.
ACCOUNT
ITEM
31
Balance
ITEM
ACCOUNT
ITEM
31
ACCOUNT
31
20—
Aug.
614
ACCOUNT NO.
POST.
REF.
CREDIT
Balance
ITEM
CREDIT
CREDIT
DEBIT
CREDIT
88.00
ITEM
CREDIT
Balance
DEBIT
CREDIT
24,101.00
ACCOUNT NO.
POST.
REF.
9
511
BALANCE
DEBIT
9
POST.
REF.
414
BALANCE
DEBIT
512
BALANCE
DEBIT
CREDIT
Purchases Returns and Allowances
31
DEBIT
ACCOUNT NO.
9
POST.
REF.
413
BALANCE
DEBIT
Purchases Discounts
DATE
CREDIT
ACCOUNT NO.
ITEM
DATE
ACCOUNT
Balance
DEBIT
22,489.65
Purchases
DATE
20—
Aug.
CREDIT
9
POST.
REF.
412
BALANCE
DEBIT
Sales Returns and Allowances
DATE
20—
Aug.
POST.
REF.
Sales Discounts
DATE
ACCOUNT
ACCOUNT NO.
DEBIT
CREDIT
ACCOUNT NO.
513
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
123.00
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ACCOUNT
Freight In
DATE
20—
Aug.
ACCOUNT
ITEM
31
ACCOUNT
ITEM
31
ACCOUNT
ACCOUNT
31
Balance
ITEM
31
31
Balance
Adj.
31
31
Balance
Adj.
CREDIT
ACCOUNT NO.
CREDIT
9
DEBIT
CREDIT
16,250.00
ACCOUNT NO.
POST.
REF.
CREDIT
DEBIT
CREDIT
3,300.00
ACCOUNT NO.
CREDIT
75.00
DEBIT
CREDIT
118.00
43.00
ACCOUNT NO.
9
J16
613
BALANCE
DEBIT
9
J16
POST.
REF.
612
BALANCE
DEBIT
9
POST.
REF.
611
BALANCE
DEBIT
Spa Supplies Expense
ITEM
DEBIT
992.00
Office Supplies Expense
DATE
20—
Aug.
Balance
ITEM
DATE
20—
Aug.
CREDIT
9
POST.
REF.
515
BALANCE
DEBIT
Rent Expense
DATE
20—
Aug.
Balance
POST.
REF.
Wages Expense
DATE
20—
Aug.
ACCOUNT NO.
614
BALANCE
DEBIT
CREDIT
345.00
DEBIT
CREDIT
535.00
190.00
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
615
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ACCOUNT
Laundry Expense
DATE
20—
Aug.
ACCOUNT
ITEM
31
Balance
ACCOUNT
ITEM
31
Balance
ACCOUNT
ITEM
31
Balance
ACCOUNT
ITEM
31
Adj.
20-Aug.
616
CREDIT
31
Adj.
DEBIT
CREDIT
455.00
ACCOUNT NO.
POST.
REF.
CREDIT
DEBIT
CREDIT
963.00
ACCOUNT NO.
POST.
REF.
J16
617
BALANCE
DEBIT
9
POST.
REF.
616
BALANCE
DEBIT
9
J16
ITEM
CREDIT
ACCOUNT NO.
618
BALANCE
DEBIT
CREDIT
281.67
DEBIT
CREDIT
281.67
Depreciation Expense, Spa Equipment
DATE
DEBIT
179.00
Insurance Expense
DATE
20-Aug.
CREDIT
9
POST.
REF.
615
BALANCE
DEBIT
Utilities Expense
DATE
20—
Aug.
POST.
REF.
Advertising Expense
DATE
20—
Aug.
ACCOUNT NO.
ACCOUNT NO.
619
BALANCE
DEBIT
129.76
CREDIT
DEBIT
CREDIT
129.76
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (continued)
ACCOUNT
Depreciation Expense, Office Equipment
DATE
20-Aug.
ACCOUNT
ITEM
31
J16
ITEM
CREDIT
20.00
31
Balance
DEBIT
CREDIT
20.00
ACCOUNT NO.
POST.
REF.
9
620
BALANCE
DEBIT
Miscellaneous Expense
DATE
20—
Aug.
Adj.
POST.
REF.
ACCOUNT NO.
630
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
371.90
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
617
CHAPTER 11
Work Sheet and Adjusting Entries
ALL ABOUT YOU SPA (concluded)
All About You Spa
Trial Balance (Adjusted)
August 31, 20-ACCOUNT NAME
Cash
Accounts Receivable
Spa Supplies
Office Supplies
Merchandise Inventory
Prepaid Insurance
Spa Equipment
Accumulated Depreciation, Spa Equipment
Office Equipment
Accumulated Depreciation, Office Equipment
Accounts Payable
Sales Tax Payable
A. Valli, Capital
A. Valli, Drawing
Income Summary
Income from Services
Merchandise Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Freight In
Wages Expense
Rent Expense
Office Supplies Expense
Spa Supplies Expense
Laundry Expense
Advertising Expense
Utilities Expense
Insurance Expense
Depreciation Expense, Spa Equipment
Depreciation Expense, Office Equipment
Miscellaneous Expense
618
DEBIT
CREDIT
40,361.74
7,196.63
345.00
75.00
13,110.00
518.33
18,083.00
194.64
1,570.00
30.00
20,393.00
2,001.12
49,884.62
5,000.00
13,110.00
25,398.00
22,489.65
88.00
24,101.00
123.00
992.00
16,250.00
3,300.00
43.00
190.00
179.00
455.00
963.00
281.67
129.76
20.00
371.90
133,624.03
133,624.03
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.