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18 Comprehensive Problem 2 TK's Farm Shop Directions on page 616 in textbook under the "Required. Start with Required #2, skipping #1 as you are using working papers. Working Pages #WP575 - WP596. During the second half of December 2021, TK's Farm Shop engaged in the following transactions: Dec. 16 Received payment from Lucy Greene on account, $1,760. 16 Sold merchandise on account to Kim Fields, $180, plus sales tax of $9. Sale No. 640. 17 Returned merchandise to Evans Essentials for credit, $170. Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,340, less the credit received on December 17. 19 Sold merchandise on account to Lucy Greene, $650, plus tax of $36. Sale No. 641. 22 Received payment from John Dempsey on account, $1,560. 23 Issued Check No. 814 for the purchase of supplies, $180. (Debit Supplie 24 Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $1,000. Invoice No. 817, dated December 26, terms 2/10, n/30. 27 Issued Check No. 815 in payment of utilities expense for the month of Dec. $830. 27 Sold merchandise on account to John Dempsey, $2,500, plus tax of $120. Sale No. 642. 29 Received payment from Martha Boyle on account, $2,800. 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $2,400. 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $160. At the end of the year, the following adjustments (a)-(j) need to be made: (a, b) Merchandise inventory as of December 31, $21,300. (c, d, e) Ted estimates that customers will be granted $350 in refunds of this year's sales next year, and the merchandise expected to be returned will have a cost of $275. (f) Unused supplies on hand as of December 31, $615. Unexpired insurance on December 31, $1,150. (h) Depreciation expense on the building for the year $750. (i) Depreciation expense on the store equipment for the year, $375. Wages earned but not yet paid as of December 31, $875. 60 18 Comprehensive Problem 2 TK's Farm Shop Directions on page 616 in textbook under the "Required. Start with Required #2, skipping #1 as you are using working papers. Working Pages #WP575 - WP596. During the second half of December 2021, TK's Farm Shop engaged in the following transactions: Dec. 16 Received payment from Lucy Greene on account, $1,760. 16 Sold merchandise on account to Kim Fields, $180, plus sales tax of $9. Sale No. 640. 17 Returned merchandise to Evans Essentials for credit, $170. Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,340, less the credit received on December 17. 19 Sold merchandise on account to Lucy Greene, $650, plus tax of $36. Sale No. 641. 22 Received payment from John Dempsey on account, $1,560. 23 Issued Check No. 814 for the purchase of supplies, $180. (Debit Supplie 24 Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $1,000. Invoice No. 817, dated December 26, terms 2/10, n/30. 27 Issued Check No. 815 in payment of utilities expense for the month of Dec. $830. 27 Sold merchandise on account to John Dempsey, $2,500, plus tax of $120. Sale No. 642. 29 Received payment from Martha Boyle on account, $2,800. 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $2,400. 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $160. At the end of the year, the following adjustments (a)-(j) need to be made: (a, b) Merchandise inventory as of December 31, $21,300. (c, d, e) Ted estimates that customers will be granted $350 in refunds of this year's sales next year, and the merchandise expected to be returned will have a cost of $275. (f) Unused supplies on hand as of December 31, $615. Unexpired insurance on December 31, $1,150. (h) Depreciation expense on the building for the year $750. (i) Depreciation expense on the store equipment for the year, $375. Wages earned but not yet paid as of December 31, $875. 60

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