ACC1020_Instructions_STUDENT_Comp Problem 2 P15-10B Additional Instructions to w

Question

ACC1020_Instructions_STUDENT_Comp Problem 2

P15-10B Additional Instructions to what is stated on page 608 in the text.

Read all instructions before starting your work. This assessment is worth 150 points.

Use the worksheet file as provided for Darby Kite Store as of December 31, 20X1.

Perform the Adjustments at the end of the year:

A and b): Merchandise Inventory as of December 31, 20X1 = $ 23,600.00

C) Unused supplies on hand $ 1,050.00

D) Insurance expired $ 250.00

E) Depreciation expense for the year: $ 400.00

F) Wages earned but not paid $ 360.00

G) Unearned revenues on December 31: $ 500.00

REQUIRED: (NOTE that this is slightly changed from the text book; added “prepare the Income Statement” on sheet 1 in the file)

1) Prepare the worksheet as provided in the separate file.

2) Prepare the adjusting entries in the separate file.

3) Prepare the Income Statement after making the adjustments. (SEE SHEET 1 on the file as provided)

4) Prepare the closing entries (these are NOT posted to the worksheet).

5) Prepare a post- closing trial balance and Post-closing Balance Sheet.

6) Prepare the reversing entries as required.

ACC100 Comprehensive Problem 2,P15-108 Template-1-Read-Only- Compabibility Mode Ecel hmet Dm Poge Layout Formulas Data Renew Wew Help ? Te1rne what you want to do Copy Fomat Paie Conditional Formatas Cell Insert Delete Format Clew nter the appreprate answs the shaded (gy)cell anteisk will aar in the column to the night of an incomect an Darby Kte Store Sheet20 Accounts Receivable 11 200 Prepaid Insyrance Accum Depr Eqiment Accounts Payatlie Wages Payable Sales Tax Payable Unearned Ravenue W P Ellis Capta 7,100 Income Summany 55 430 Sales Returs& Alewances Purchases 1.320 O Tyve there to search 6 8

Explanation / Answer

Event Date Account Debit Credit A. Dec 31 Income Summary 25000 Merchandise Inventory 25000 B. Dec 31 Merchandise Inventory 23600 Income Summary 23600 C. Dec 31 Supplies Expense 150 Supplies (1200-1050) 150 D. Dec 31 Insurance Expense 250 Prepaid Insurance 250 E. Dec 31 Depreciation Expense-Equipment 400 Accumulated Depreciation-Equipment 400 F. Dec 31 Wages Expense 360 Wages Payable 360 G. Dec 31 Unearned Revenue (3000-500) 2500 Sales 2500 ADJUSTING ENTRIES Dec 31 Sales 57970 Purchases Return and Allowance 1120 Purchase Discount 630 Income Summary 59720 Dec 31 Income Summary 53730 Sales Return and Allowance 1450 Purchases 34500 Freight in 360 Wages Expense 11240 Advertising Expense 740 Supplies Expense 150 Telephone Expense 1100 Utilities Expense 2300 Insurance Expense 250 Depreciation 400 Miscellaneous Expense 320 Interst Expense 920 Dec 31 Income Summary 59720 Retained Earning 59720 Dec 31 Retained Earning 53730 Income Summary 53730 Dec 31 Retained Earning 1400 Income Summary 1400 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 11700 11700 11700 Accounts Receivable 11200 11200 11200 Merchandise Inventory 25000 23600 25000 23600 23600 Supplies 1200 150 1050 1050 Prepaid Expense 800 250 550 550 Equipment 5400 5400 5400 Acc Dep-Equipment 800 400 1200 1200 Accounts Payable 7100 7100 7100 Wages Payable 360 360 360 Sales Tax Payable 250 250 250 Unearned Revenue 3000 2500 500 500 Capital 50000 50000 50000 Drawing 10500 10500 10500 Income Summary 25000 23600 -1400 Sales 55470 2500 57970 57970 Sales Return and Allowance 1450 1450 1450 Purchases 34500 34500 34500 Purchases Return and Allowance 1120 1120 1120 Purchase Discount 630 630 630 Freight in 360 360 360 Wages Expense 10880 360 11240 11240 Advertising Expense 740 740 740 Supplies Expense 150 150 150 Telephone Expense 1100 1100 1100 Utilities Expense 2300 2300 2300 Insurance Expense 250 250 250 Depreciation 400 400 400 Miscellaneous Expense 320 320 320 Interst Expense 920 920 920 Retained Earning 4590 118370 118370 52260 52260 117730 117730 53730 59720 64000 64000

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