# John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b) A physical count shows that merchandise inventory costing \$51,800 is on hand as of December 31, 20--. (c, d, e) Neff estimates that customers will be granted \$2,000 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of \$1,200. (f) Supplies remaining at the end of the year, \$600. (g) Unexpired insurance on December 31, \$2,600. (h) Depreciation expense on the building for 20--, \$5,000. (i) Depreciation expense on the store equipment for 20--, \$3,000. (j) Wages earned but not paid as of December 31, \$1,800. (k) Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is \$3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).

### College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

### College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

#### Solutions

Chapter
Section
Chapter 14, Problem 1MP
Textbook Problem

## Expert Solution

### Want to see the full answer?

Check out a sample textbook solution.See solution

### Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Find more solutions based on key concepts
Show solutions