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Completion of a Work Sheet Showing a Net Income

1. Complete the Adjustments columns.

2. Complete the work sheet.

3. Enter the adjustments in a general journal. If an amount box does not require an entry, leave it blank.

The trial balance for the Venice Beach Kite Shop, a business owned by Molly Young, is shown below.

Venice Beach Kite Shop Trial Balance December 31, 20 --
ACCOUNT TITLE	DEBIT BALANCE	CREDIT BALANCE
Cash	19,743
Accounts Receivable	13,827
Merchandise Inventory	24,755
Supplies	7,957
Prepaid Insurance	5,540
Land	29,680
Building	49,020
Accumulated Depreciation - Building		19,608
Store Equipment	36,580
Accumulated Depreciation - Store Equipment		14,632
Accounts Payable		9,603
Wages Payable
Sales Tax Payable		5,960
Unearned Repair Revenue		8,950
Mortgage Payable		44,650
M. Young, Capital		63,760
M. Young, Drawing	26,442
Income Summary
Sales		119,850
Sales Returns and Allowances	1,756
Rent Revenue
Purchases	27,496
Purchases Returns and Allowances		1,356
Purchases Discounts		1,761
Freight-In	2,079
Wages Expense	31,567
Advertising Expense	3,505
Supplies Expense
Phone Expense	1,326
Utilities Expense	8,027
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Store Equipment
Miscellaneous Expense	830
	290,130	290,130

Year-end adjustment information is as follows:

(a and b)	Merchandise inventory costing $34,519 is on hand as of December 31, 20--. (The periodic inventory system is used.)
(c)	Supplies remaining at the end of the year, $3,207.
(d)	Unexpired insurance on December 31, $3,769.
(e)	Depreciation expense on the building for 20--, $2,451.
(f)	Depreciation expense on the store equipment for 20--, $3,658.
(g)	Unearned rent revenue as of December 31, $4,480.
(h)	Wages earned but not paid as of December 31, $838. 1. Complete the Adjustments columns. 2. Complete the work sheet. If an amount box does not require an entry, leave it blank. Venice Beach Kite Shop Work Sheet For Year Ended December 31, 20-- TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash 19,743 Accounts Receivable 13,827 Merchandise Inventory 24,755 Supplies 7,957 Prepaid Insurance 5,540 Land 29,680 Building 49,020 Accumulated Depr.Building 19,608 Store Equipment 36,580 Accumulated Depr.Store Equip. 14,632 Accounts Payable 9,603 Wages Payable Sales Tax Payable 5,960 Unearned Rent Revenue 8,950 Mortgage Payable 44,650 M. Young, Capital 63,760 M. Young, Drawing 26,442 Income Summary Sales 119,850 Sales Returns and Allowances 1,756 Rent Revenue Purchases 27,496 Purchases Returns and Allow. 1,356 Purchases Discounts 1,761 Freight-In 2,079 Wages Expense 31,567 Advertising Expense 3,505 Supplies Expense Phone Expense 1,326 Utilities Expense 8,027 Insurance Expense Depreciation ExpenseBuilding Depreciation Exp.Store Equip. Miscellaneous Expense 830 290,130 290,130 Net Income

General Joumal 3- Enter the adjustments in a general jaurnal. If an amount box daes not require an entry, leave it blank. Paoe DOC POST. DEBIT DATE ACCOUNT TITLE NO REF. 4 b 10 d. 10 12 3 e. 13 14 15 16 17 18 19 199- 20 20 21 22 h 22 23 23

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