John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 563. Year-end adjustment data for the Waikiki Surf Shop are shown below. (a and b) A physical count shows merchandise inventory costing $45,000 on hand as of December 31, 20-- Neff uses the periodic inventory system. (c) Supplies remaining at the end of the year, $600. (d) Unexpired insurance on December 31, $900. (e) Depreciation expense on the building for 20--, $6,000. (f) Depreciation expense on the store equipment for 20--, $4,500. (g) Wages earned but not paid as of December 31, $675. (h) Unearned boat rental revenue as of December 31, $3,000. REQUIRED 1. Prepare a year-end work sheet. 2. Journal the adjusting entries.

Question

MASTERY PROBLEM
John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided
on page 563. Year-end adjustment data for the Waikiki Surf Shop are shown below.
(a and b) A physical count shows merchandise inventory costing $45,000 on hand
as of December 31, 20-- Neff uses the periodic inventory system.
(c) Supplies remaining at the end of the year, $600.
(d) Unexpired insurance on December 31, $900.
(e) Depreciation expense on the building for 20--, $6,000.
(f) Depreciation expense on the store equipment for 20--, $4,500.
(g) Wages earned but not paid as of December 31, $675.
(h) Unearned boat rental revenue as of December 31, $3,000.

REQUIRED
1. Prepare a year-end work sheet.

2. Journal the adjusting entries.

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