Textbook Problem

END-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND REVERSING ENTRIES Vicki’s Fabric Store shows the trial balance on page 601 as of December 31, 20-1.

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

(a, b)    Merchandise inventory as of December 31, $31,600.

(c, d, e)    Vicki estimates that customers will be granted $2,500 in refunds of this year’s sales next year and the merchandise expected to be returned will have a cost of $1,800.

(f)    Unused supplies on hand, $350.

(g)    Insurance expired, $2,400.

(h)    Depreciation expense for the year on building, $20,000.

(i)    Depreciation expense for the year on equipment, $4,000.

(j)    Wages earned but not paid (Wages Payable), $520.

(k)    Unearned revenue on December 31, 20-1, $1,200.

PROBLEM 15-10A CONT.

REQUIRED

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