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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows:

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Data for the adjustments are as follows:

a–b. Merchandise Inventory at December 31, $104,565.

c. Wages accrued at December 31, $934.

d. Supplies inventory (on hand) at December 31, $755.

e. Depreciation of store equipment, $4,982.

f. Depreciation of office equipment, $1,531.

g. Insurance expired during the year, $935.

h. Rent earned, $2,450.

Required

  1. 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL.
  2. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 16.

1.

To determine

Prepare worksheet for P Furniture as of December 31 from the given ledger balance.

Explanation

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

Worksheet: A worksheet is a spreadsheet used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger...

2.

To determine

Journalize the adjusting entries.

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