The trial balance for Cascade Bicycle Shop, a business own
Question and Solution
The trial balance for Cascade Bicycle Shop, a business owned by David Lamond, is shown below. Year-end adjustment information is as follows: (a and b) Merchandise inventory costing $22,000 is on hand as of December 31, 20--. (The periodic inventory system is used.) (c) Supplies remaining at the end of the year, $2,400. (d) Unexpired insurance on December 31, $1,750. (e) Depreciation expense on the building for 20--, $4,000. (f) Depreciation expense on the store equipment for 20--, $3,600. (g) Unearned storage revenue as of December 31, $1,950. (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 the generaljournal.