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The trial balance and adjusted trial balance represented below were entered on the work sheet of Blue Grass Notes for the year ended December 31, 20--.

Work Sheet (partial)
		Trial Balance			Adjusted Trial Balance
Account Title		Debit	Credit		Debit	Credit
Cash		18,040			18,040
Accounts Receivable		4,400			4,400
Merchandise Inventory		42,600			40,400
Supplies		2,530			2,530
Prepaid Insurance		6,900			3,850
Store Equipment		118,800			118,800
Accumulated DepreciationStore Equipment			46,530			64,130
Building		132,000			132,000
Accumulated DepreciationBuilding			68,200			74,800
Land		69,000			69,000
Accounts Payable			8,280			8,280
Sales Tax Payable			1,320			1,320
Wages Payable						3,410
Mortgage Payable			91,000			91,000
Unearned Sales Revenue			3,300			330
Delta Tools, Capital			132,000			132,000
Delta Tools, Drawing		26,400			26,400
Income Summary					42,600	40,400
Sales			250,800			253,770
Delta Tools, Capital			250,800			253,770
Sales Returns and Allowances		1,540			1,540
Purchases		105,960			105,960
Purchases Returns and Allowances			2,650			2,650
Purchases Discounts			10,230			10,230
Freight-In		1,320			1,320
Wages Expense		15,300			18,710
Telephone Expense		25,080			25,080
Utilities Expense		23,980			23,980
Depreciation ExpenseStore Equipment					17,600
Depreciation ExpenseBuilding					6,600
Insurance Expense					3,050
Advertising Expense		15,180			15,180
Miscellaneous Expense		5,280			5,280
		614,310	614,310		682,320	682,320

1. Examine the trial balance and adjusted trial balance and prepare the year-end adjusting entries for Blue Grass Notes.

If an amount box does not require an entry, leave it blank.

Page:

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	a.					1
2						2
3						3
4	b.					4
5						5
6						6
7	d.					7
8						8
9						9
10	e.					10
11						11
12						12
13	f.					13
14						14
15						15
16	g.					16
17						17
18						18
19	h.					19
20						20

2. Prepare the cost of goods sold section of the income statement for Blue Grass Notes for the year ended December 31, 20--.

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