Journalizing /Trial balance

68248_1_graded-3.doc

1. 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:

1. Prepare a work sheet for the fiscal year ending December 31, 2006. List all accounts in order given.

2. Journalize the adjusting entries.

3. Journalize the closing entries.