The trial balance for Darby Kite Store as of December 31,
Question and Solution
The trial balance for Darby Kite Store as of December 31, 20-1, is shown on page 608. At the end of the year, the following adjustments need to be made: (a and b) Merchandise inventory as of December 31, $23,600. (c) Unused supplies on hand, $1,050. (d) Insurance expired, $250. (e) Depreciation expense for the year, $400. (f) Wages earned but not paid (Wages Payable), $360. (g) Unearned revenue on December 31, 20-1, $500. REQUIRED 1. Prepare a work sheet. 2. Prepare adjusting entries.
3. Prepare closing entries. 4. Prepare a post-closing trialbalance.