A trial balance for the Basket Corner, a business owned by
Question and Solution
A trial balance for the Basket Corner, a business owned by Linda Palermo, is shown on page 567. Year-end adjustment information is provided below. (a and b) Merchandise inventory costing $24,000 is on hand as of December 31, 20--. (The periodic inventory system is used.) (c) Supplies remaining at the end of the year, $2,100. (d) Unexpired insurance on December 31, $2,600. (e) Depreciation expense on the building for 20--, $5,300. (f) Depreciation expense on the store equipment for 20--, $3,800. (g) Unearned decorating revenue as of December 31, $1,650. (h) Wages earned but not paid as of December 31, $750. REQUIRED 1. Complete the Adjustments columns, identifying each adjustment with its corresponding letter. 2. Complete the work sheet. 3. Enter the adjustments in a generaljournal.