Response to the following problem:
Here are the accounts in the ledger of Misha's Jewel Box, with the balances as of December 31, the end of its fiscal year.
|
Cash
|
$13,242
|
|
Accounts Receivable
|
3,984
|
|
Merchandise Inventory
|
126,540
|
|
Supplies
|
2,484
|
|
Prepaid Insurance
|
2,655
|
|
Land
|
18,000
|
|
Building
|
97,000
|
|
Accumulated Depreciation, Building
|
38,240
|
|
Store Equipment
|
46,170
|
|
Accumulated Depreciation, Store Equipment
|
16,250
|
|
Accounts Payable
|
8,270
|
|
Sales Tax Payable
|
2,371
|
|
Mortgage Payable
|
77,871
|
|
M. Beloit, Capital
|
185,000
|
|
M. Beloit, Drawing
|
48,000
|
|
Sales
|
379,354
|
|
Sales Returns and Allowances
|
3,892
|
|
Cost of Goods Sold
|
279,198
|
|
Salary Expense
|
54,400
|
|
Advertising Expense
|
3,526
|
|
Utilities Expense
|
2,538
|
|
Property Tax Expense
|
1,162
|
|
Miscellaneous Expense
|
1,613
|
|
Interest Expense
|
2,952
|
Here are the data for the adjustments. Assume that Misha's Jewel Box uses the perpetual inventory system.
a. Merchandise Inventory at December 31, $124,630.
b. Insurance expired during the year, $1,294.
c. Depreciation of building, $3,300.
d. Depreciation of store equipment, $6,470.
e. Salaries accrued at December 31, $2,470.
f. Store supplies inventory (on hand) at December 31, $1,959.
Required:
1. Complete the work sheet after entering the account names and balances onto the work sheet.
2. Journalize the adjusting entries on journal.