Quiz: Periodic Inventory System

Bedazzle Department Store is located in midtown Metropolis. At the end of the first quarter of
2019, the following accounts appeared in its unadjusted trial balance:
Bedazzle Department Store
Trial Balance
For the period of January 1 – March 31, 2019
Account Title Debit Credit
Cash 14,500
Accounts Receivable 11,770
Prepaid Insurance 4,500
Supplies 150,000
Merchandise Inventory 34,360
Store Equipment 125,000
Accum. Depr. Store Equipment 41,800
Building 210,000
Accum. Depr. Building 42,000
Accounts Payable 40,210
Property Taxes Payable
Sales Commissions Payable 8,000
Shared Capital 245,880
Retained Earnings 6,500
Dividend 12,000
Purchases 650,000
Freight-in 5,060
Purchases Discounts 8,900
Purchase Returns & Allow. 6,500
Sales 980,000
Sales Returns & Allowances 10,000
Cost of Goods Sold
Sales Salaries Expense 130,000
Sales Commissions Expense 12,000
Supplies Expense
Insurances Expense
Property Taxes Expense
Utilities Expense 10,600
Deprec. Expense-Store Equipment
Deprec. Expense-Building
1,379,790 1,379,790
Other data for adjustments:
1. The actual merchandise inventory on hand at March 31 is $50,000.
2. Total of the supplies remain in the company is $120,000.
3. Prepaid insurance is expired $250 per month.
4. Store equipment is depreciated for $100 per month.
5. Building is depreciated on the monthly rate of $1,210.
6. Property taxes rate is 2% of the cost of building for the first quarter of 2019.
7. During the first quarter of 2019, $1,000 of the sales commission has not been paid to the
salesmen.
Instruction: Prepare adjustment journal entries, worksheet, financial statements for the first
quarter of 2019, and closing entries.