John Neff owns and operates Waikiki Surf Shop. A year-end
Question and Solution
John Neff owns and operates Waikiki Surf Shop. A year-end trial balance. Year-end adjustment data for the Waikiki Surf Shop are shown below. (a and b) A physical count shows merchandise inventory costing $45,000 on hand as of December 31, 20--. Neff uses the periodic inventory system. (c) Supplies remaining at the end of the year, $600. (d) Unexpired insurance on December 31, $900. (e) Depreciation expense on the building for 20--, $6,000. (f) Depreciation expense on the store equipment for 20--, $4,500. (g) Wages earned but not paid as of December 31, $675. (h) Unearned boat rental revenue as of December 31, $3,000. REQUIRED 1. Prepare a year-end work sheet. 2. Journalize the adjustingentries.