The trial balance for Danbury Kite Shop as of December 31, 20-1, is shown. Danbury Kite Shop UNADJUSTED TRIAL BALANCE December 31, 20-- ACCOUNT TITLE DEBIT CREDIT 1 Cash 33,600.00 2 Accounts Receivable 17,040.00 3 Merchandise Inventory 36,000.00 4 Estimated Returns Inventory 3,600.00 5 Supplies 1,920.00 6 Prepaid Insurance 4,320.00 7 Land 144,000.00 8 Building 480,000.00 9 Accumulated Depreciation-Building 72,000.00 10 Equipment 108,000.00 11 Accumulated Depreciation-Equipment 14,400.00 12 Accounts Payable 13,744.00 13 Customer Refunds Payable 5,000.00 14 Wages Payable 15 Sales Tax Payable 2,400.00 16 Unearned Repair Revenue 6,000.00 17 Note Payable 96,000.00 18 William Danbury, Capital 465,144.00 19 William Danbury, Drawing 25,932.00 20 Income Summary 21 Sales 449,400.00 22 Sales Returns and Allowances 15,360.00 23 Repair Revenue 1,440.00 24 Purchases 169,800.00 25 Purchases Returns and Allowances 2,160.00 26 Purchases Discounts 996.00 27 Freight-In 960.00 28 Wages Expense 78,000.00 29 Advertising Expense 972.00 30 Supplies Expense 31 Phone Expense 1,452.00 32 Utilities Expense 3,888.00 33 Insurance Expense 34 Depreciation Expense-Building 35 Depreciation Expense-Equipment 36 Interest Expense 3,840.00 37 Totals 1,128,684.00 1,128,684.00 At the end of the year, the following adjustments need to be made: (a and b) Merchandise inventory as of December 31, $37,920. (c, d, e) Bill Danbury estimates that customers will be granted $3,000 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of $2,160. (f) Unused supplies on hand, $420. (g) Insurance expired, $2,880. (h) Depreciation expense for the year on building, $24,000. (i) Depreciation expense for the year on equipment, $4,800. (j) Wages earned but not paid (Wages Payable), $624. (k) Unearned repair revenue on December 31, 20-1, $1,440. Required: 1. Prepare an end-of-period spreadsheet. 2. Prepare adjusting entries and post adjusting entries to an Income Summary T account. 3. Prepare closing entries and post to a Capital T account. There were no additional investments this year. 4. Prepare a post-closing trial balance. 5. Prepare reversing entry(ies).

The trial balance for Danbury Kite Shop as of December 31, 20-1, is shown. Danbury Kite Shop UNADJUSTED TRIAL BALANCE December 31, 20-- ACCOUNT TITLE DEBIT CREDIT 1 Cash 33,600.00 2 Accounts Receivable 17,040.00 3 Merchandise Inventory 36,000.00 4 Estimated Returns Inventory 3,600.00 5 Supplies 1,920.00 6 Prepaid Insurance 4,320.00 7 Land 144,000.00 8 Building 480,000.00 9 Accumulated Depreciation-Building 72,000.00 10 Equipment 108,000.00 11 Accumulated Depreciation-Equipment 14,400.00 12 Accounts Payable 13,744.00 13 Customer Refunds Payable 5,000.00 14 Wages Payable 15 Sales Tax Payable 2,400.00 16 Unearned Repair Revenue 6,000.00 17 Note Payable 96,000.00 18 William Danbury, Capital 465,144.00 19 William Danbury, Drawing 25,932.00 20 Income Summary 21 Sales 449,400.00 22 Sales Returns and Allowances 15,360.00 23 Repair Revenue 1,440.00 24 Purchases 169,800.00 25 Purchases Returns and Allowances 2,160.00 26 Purchases Discounts 996.00 27 Freight-In 960.00 28 Wages Expense 78,000.00 29 Advertising Expense 972.00 30 Supplies Expense 31 Phone Expense 1,452.00 32 Utilities Expense 3,888.00 33 Insurance Expense 34 Depreciation Expense-Building 35 Depreciation Expense-Equipment 36 Interest Expense 3,840.00 37 Totals 1,128,684.00 1,128,684.00 At the end of the year, the following adjustments need to be made: (a and b) Merchandise inventory as of December 31, $37,920. (c, d, e) Bill Danbury estimates that customers will be granted $3,000 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of $2,160. (f) Unused supplies on hand, $420. (g) Insurance expired, $2,880. (h) Depreciation expense for the year on building, $24,000. (i) Depreciation expense for the year on equipment, $4,800. (j) Wages earned but not paid (Wages Payable), $624. (k) Unearned repair revenue on December 31, 20-1, $1,440. Required: 1. Prepare an end-of-period spreadsheet. 2. Prepare adjusting entries and post adjusting entries to an Income Summary T account. 3. Prepare closing entries and post to a Capital T account. There were no additional investments this year. 4. Prepare a post-closing trial balance. 5. Prepare reversing entry(ies).

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 1AP

See similar textbooks

Related questions

Question

The trial balance for Danbury Kite Shop as of December 31, 20-1, is shown.

Danbury Kite Shop

UNADJUSTED TRIAL BALANCE

December 31, 20--

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	33,600.00
2	Accounts Receivable	17,040.00
3	Merchandise Inventory	36,000.00
4	Estimated Returns Inventory	3,600.00
5	Supplies	1,920.00
6	Prepaid Insurance	4,320.00
7	Land	144,000.00
8	Building	480,000.00
9	Accumulated Depreciation-Building		72,000.00
10	Equipment	108,000.00
11	Accumulated Depreciation-Equipment		14,400.00
12	Accounts Payable		13,744.00
13	Customer Refunds Payable		5,000.00
14	Wages Payable
15	Sales Tax Payable		2,400.00
16	Unearned Repair Revenue		6,000.00
17	Note Payable		96,000.00
18	William Danbury, Capital		465,144.00
19	William Danbury, Drawing	25,932.00
20	Income Summary
21	Sales		449,400.00
22	Sales Returns and Allowances	15,360.00
23	Repair Revenue		1,440.00
24	Purchases	169,800.00
25	Purchases Returns and Allowances		2,160.00
26	Purchases Discounts		996.00
27	Freight-In	960.00
28	Wages Expense	78,000.00
29	Advertising Expense	972.00
30	Supplies Expense
31	Phone Expense	1,452.00
32	Utilities Expense	3,888.00
33	Insurance Expense
34	Depreciation Expense-Building
35	Depreciation Expense-Equipment
36	Interest Expense	3,840.00
37	Totals	1,128,684.00	1,128,684.00

At the end of the year, the following adjustments need to be made:

(a and b)	Merchandise inventory as of December 31, $37,920.
(c, d, e)	Bill Danbury estimates that customers will be granted $3,000 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of $2,160.
(f)	Unused supplies on hand, $420.
(g)	Insurance expired, $2,880.
(h)	Depreciation expense for the year on building, $24,000.
(i)	Depreciation expense for the year on equipment, $4,800.
(j)	Wages earned but not paid (Wages Payable), $624.
(k)	Unearned repair revenue on December 31, 20-1, $1,440.

Required:

1.	Prepare an end-of-period spreadsheet.
2.	Prepare adjusting entries and post adjusting entries to an Income Summary T account.
3.	Prepare closing entries and post to a Capital T account. There were no additional investments this year.
4.	Prepare a post-closing trial balance.
5.	Prepare reversing entry(ies).

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.