Instructions The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. $ 15,349 Cash Accounts Receivable 13,810 Merchandise Inventory 50.280 Store Supplies 1,935 Prepaid Insurance 1,385 Store Equipment 18,640 Accumulated Depreciation, Store Equipment 6,882 Accounts Payable 10,065 B. E. Celso, Capital 96,524 B. E. Celso, Drawing 30,000 Sales 208,030 Sales Retums and Allowances 1,740 Purchases 133,050 Purchases Retums and Allowances 4.295 Purchases Discounts 3,853 Freight In 8,350 Wages Expense 35,400 Advertising Expense 7,710 Rent Expense 12,000 The data needed for the adjustments on June 30 are as follows: a-b. Merchandise inventory, June 30, $54,600. Insurance expired for the year, $475. C. Depreciation for the year, $4,380. d. Accrued wages on June 30, $1,492. e. f. Supplies on hand at the end of the year, $100. Required: 1. Prepare a work sheet for the fiscal year ended June 30. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Labels Cost of Goods Sold Current Assets Current Liabilities For Year Ended June 30, 20-- June 30, 20- Operating Expenses Property and Equipment Revenue from Sales Amount Descriptions Cost of Goods Available for Sale B. E. Celso, Capital, July 1, 20- B. E. Celso, Capital, June 30, 20-- Gross Profit Decrease in Capital Delivered Cost of Purchases Increase in Capital Net Income Net Loss Net Purchases Net Sales Merchandise Inventory, July 1, 20- Merchandise Inventory, June 30, 20- Total Assets Total Cost of Goods Sold Total Current Assets Total Expenses Total Liabilities Total Liabilities and Owner's Equity Total Operating Expenses Withdrawals for the Year CHART OF ACCOUNTS Celso and Company General Ledger ASSETS REVENUE 111 Cash 411 Sales 112 Accounts Receivable 412 Sales Returns and Allowances 113 Notes Receivable 413 Sales Discounts 114 Merchandise Inventory Store Supplies 115 EXPENSES 116 Prepaid Insurance 511 Purchases Prepaid Property Taxes 117 512 Purchase Returns and Allowances Store Equipment 124 513 Purchases Discounts 124.1 Accumulated Depreciation, Store Equipment 514 Freight-in 130 Land 521 Delivery Equipment Expenses 533 Insurance Expense Store Supplies Expense LIABILITIES 537 212 Accounts Payable 541.1 Depreciation Expense, Store Equipment 214 Sales Tax Payable 551 Advertising Expense 215 Wages Payable 621 Wages Expense 235 Notes Payable Rent Expense 627 Miscellaneous Expenses 631 EQUITY 810 Interest Expense 311 B. E. Celso, Capital 312 B. E. Celso, Drawing 313 Income Summary