The Game Place is a retail store that sells computer

The Game Place is a retail store that sells computer games, owned by Matt Huffman. On
December 31, 2019, the firm's general ledger contained the accounts and balances below. All
account balances are normal.Cash .........................................................$ 34,465Accounts
Receivable ..........................................1,669Prepaid Advertising
.............................................480Supplies ...........................................................425Merchandise
Inventory .....................................18,500Store Equipment
.............................................30,000Accumulated Depreciation-Store Equipment
...........3,000Office Equipment .............................................4,800Accumulated Depreciation-
Office Equipment .........1,500Notes Payable, due 2020 ...................................22,500Accounts
Payable .............................................5,725Wages PayableSocial Security Tax PayableMedicare
Tax PayableUnearned Seminar Fees .....................................7,500Interest PayableMatt
Huffman, Capital ....................................43,000Matt Huffman, Drawing
..................................18,000Income SummarySales
.........................................................163,660Sales Discounts
.................................................180Seminar Fee IncomePurchases
....................................................92,500Purchases Returns and Allowances
..........................770Freight In ........................................................275Rent Expense
................................................26,400Wages Expense
.............................................18,000Payroll Taxes Expense
.......................................1,811Depreciation Expense-Store EquipmentDepreciation Expense-
Office EquipmentAdvertising ExpenseSupplies ExpenseInterest Expense
..............................................150INSTRUCTIONS1. Prepare the Trial Balance section of a
10-column worksheet. The worksheet covers the year ended December 31, 2019.2. Enter the
adjustments below in the Adjustments section of the worksheet. Identify each adjustment with
the appropriate letter.3. Complete the worksheet.ADJUSTMENTSa.-b. Merchandise inventory at
December 31, 2019, was counted and determined to be $21,200.c. The amount recorded as
prepaid advertising represents $480 paid on September 1, 2019, for six months of advertising.d.
The amount of supplies on hand at December 31 was $125.e. Depreciation on store equipment
was $4,500 for 2019.f. Depreciation on office equipment was $1,500 for 2019.g. Unearned
seminar fees represent $7,500 received on November 1, 2019, for five seminars. AtDecember
31, three of these seminars had been conducted.h. Wages owed but not paid at December 31
were $800.i. On December 31, 2019, the firm owed the employer's social security tax ($49.60)
andMedicare tax ($11.60).j. The note payable bears interest at 8 percent per annum. One
month's interest is owed atDecember 31, 2016.Analyze: How did the balance of merchandise
inventory change during the year ended December 31, 2019?View Solution: The Game Place is
a retail store that sells computer
SOLUTION-- http://solutiondone.online/downloads/the-game-place-is-a-retail-store-that-sells-
computer/

Unlock answers here solutiondone.online