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The accounts and their balances in the ledger of Viaduct Co. on December 31, 20xx, are as follows
| Cash | 18,000 | Sales | 815,000 |
| Accounts Receivable | 82,500 | Sales Returns and Allowances | 11,900 |
| Merchandise Inventory | 165,000 | Sales Discounts | 7,100 |
| Prepaid Insurance | 9,700 | Cost of Merchandise Sold | 476,200 |
| Store Supplies | 4,250 | Sales Salaries Expense | 76,400 |
| Office Supplies | 2,100 | Advertising Expense | 25,000 |
| Store Equipment | 157,000 | Depreciation Expense - Store Equip. | 0 |
| Acc. Depreciation - Store Equipment | 40,300 | Store Supplies Expense | 0 |
| Office Equipment | 50,000 | Misc. Selling Expense | 1,600 |
| Acc. Depreciation - Office Equipment | 17,200 | Office Salaries Expense | 34,000 |
| Accounts Payable | 66,700 | Rent Expense | 16,000 |
| Salaries Payable | 0 | Rent Revenue | 0 |
| Unearned Rent | 1,200 | Insurance Expense | 0 |
| Notes Payable (Final Pymt due 2016) | 105,000 | Depreciation Expense - Office Equip. | 0 |
| Capital Stock | 50,000 | Office Supplies Expense | 0 |
| Retained Earnings | 84,600 | Misc. Administrative Expense | 1,650 |
| Dividends | 30,000 | Interest Expense | 11,600 |
| Income Summary | 0 | | |
The data needed for year-end adjustments on December 31 is as follows:
| Physical Inventory on 12/31 | 157,500 |
| Insurance expired during year | 4,000 |
| Store Supplies on hand 12/31 | 1,100 |
| Office Supplies on hand 12/31 | 600 |
| Store Equip Depreciation for year | 4,500 |
| Office Equip Depreciation for year | 2,800 |
| Sales Salaries payable 12/31 | 2,850 |
| Office Salaries payable 12/31 | 800 |
| Unearned rent on 12/31 | 800 |
Instructions:
Prepare a work sheet for the fiscal year ending December 31, 2006. List all accounts in order given.
Journalize the adjusting entries.
Journalize the closing entries.
Answer & Explanation
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