Work Sheet Extensions for Merchandise Inventory Adjustments: Periodic Inventory System
The following partial work sheet is taken from Kevin’s Gift Shop for the year ended December 31, 20–. The ending merchandise inventory is $49,095.
| Kevin’s Gift Shop Work Sheet (Partial) For Year Ended December 31, 20– |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ACCOUNT TITLE | TRIAL BALANCE | ADJUSTMENTS | ||||||||||
| DEBIT | CREDIT | DEBIT | CREDIT | |||||||||
| Merchandise Inventory | 38,815 | |||||||||||
| Income Summary | ||||||||||||
| Purchases | 91,460 | |||||||||||
| Purchases Returns and Allowances | 2,065 | |||||||||||
| Purchases Discounts | 2,760 | |||||||||||
| Freight-In | 460 | |||||||||||
1. Complete the Adjustments columns for the merchandise inventory.
2. Extend the merchandise inventory to the Adjusted Trial Balance and Balance Sheet columns.
3. Extend the remaining accounts to the Adjusted Trial Balance and Income Statement columns.
4. Prepare a cost of goods sold section from the partial work sheet.
