1. The accounts and their balances in the ledger of Viaduct Co. on December 31, 20xx, are as follows
|
Cash
|
18,000
|
Sales
|
815,000
|
|
Accounts Receivable
|
82,500
|
Sales Returns and Allowances
|
11,900
|
|
Merchandise Inventory
|
165,000
|
Sales Discounts
|
7,100
|
|
Prepaid Insurance
|
9,700
|
Cost of Merchandise Sold
|
476,200
|
|
Store Supplies
|
4,250
|
Sales Salaries Expense
|
76,400
|
|
Office Supplies
|
2,100
|
Advertising Expense
|
25,000
|
|
Store Equipment
|
157,000
|
Depreciation Expense - Store Equip.
|
0
|
|
Acc. Depreciation - Store Equipment
|
40,300
|
Store Supplies Expense
|
0
|
|
Office Equipment
|
50,000
|
Misc. Selling Expense
|
1,600
|
|
Acc. Depreciation - Office Equipment
|
17,200
|
Office Salaries Expense
|
34,000
|
|
Accounts Payable
|
66,700
|
Rent Expense
|
16,000
|
|
Salaries Payable
|
0
|
Rent Revenue
|
0
|
|
Unearned Rent
|
1,200
|
Insurance Expense
|
0
|
|
Notes Payable (Final Pymt due 2016)
|
105,000
|
Depreciation Expense - Office Equip.
|
0
|
|
Capital Stock
|
50,000
|
Office Supplies Expense
|
0
|
|
Retained Earnings
|
84,600
|
Misc. Administrative Expense
|
1,650
|
|
Dividends
|
30,000
|
Interest Expense
|
11,600
|
|
Income Summary
|
0
|
|
|
The data needed for year-end adjustments on December 31 is as follows:
|
Physical Inventory on 12/31
|
157,500
|
|
Insurance expired during year
|
4,000
|
|
Store Supplies on hand 12/31
|
1,100
|
|
Office Supplies on hand 12/31
|
600
|
|
Store Equip Depreciation for year
|
4,500
|
|
Office Equip Depreciation for year
|
2,800
|
|
Sales Salaries payable 12/31
|
2,850
|
|
Office Salaries payable 12/31
|
800
|
|
Unearned rent on 12/31
|
800
|
Instructions:
1. Prepare a work sheet for the fiscal year ending December 31, 2006. List all accounts in order given.
2. Journalize the adjusting entries.
3. Journalize the closing entries.