Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Advertising Expense Supplies Expense Interest Expense

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal. Cash …………………………………………………………………..$ 28,386 Accounts Receivable ………………………………………………………500 Prepaid Advertising ……………………………………………………….480 Supplies ……………………………………………………………………300 Merchandise Inventory ………………………………………………..15,000 Store Equipment ……………………………………………………….25,000 Accumulated Depreciation-Store Equipment …………………………3,000 Office Equipment ……………………………………………………….5,000 Accumulated Depreciation-Office Equipment ……………………….1,500 Notes Payable, due 2020 ………………………………………………20,000 Accounts Payable ……………………………………………………….2,705 Wages Payable Social Security Tax Payable Medicare Tax Payable Unearned Seminar Fees …………………………………………………6,000 Interest Payable Vincent Arroyo, Capital ……………………………………………….32,700 Vincent Arroyo, Drawing ………………………………………………14,110 Income Summary Sales …………………………………………………………………..153,970 Sales Discounts ……………………………………………………………200 Seminar Fee Income Purchases ………………………………………………………………91,000 Purchases Returns and Allowances …………………………………….1,000 Freight In …………………………………………………………………225 Rent Expense …………………………………………………………13,200 Wages Expense ……………………………………………………….24,000 Payroll Taxes Expense …………………………………………………3,324 Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Advertising Expense Supplies Expense Interest Expense 150 INSTRUCTIONS: 1. 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. ADJUSTMENTS: a.-b. Merchandise inventory at December 31, 2019, was counted and determined to be $13,000. c. The amount recorded as prepaid advertising represents $480 paid on September 1, 2019, for 12 months of advertising. d. The amount of supplies on hand at December 31 was $160. e. Depreciation on store equipment was $3,000 for 2019. f. Depreciation on office equipment was $1,125 for 2019. g. Unearned seminar fees represent $6,000 received on November 1, 2019, for six seminars. At December 31, four of these seminars had been conducted. h. Wages owed but not paid at December 31 were $500. i. On December 31, 2019, the firm owed the employer’s social security tax ($31.00) and Medicare tax ($7.25). j. The note payable bears interest at 6 percent per annum. One month’s interest is owed at December 31, 2019. Analyze: What was the amount of revenue earned by conducting seminars during the year ended December 31, 2019? View Solution:
The Artisan Wines is a retail store selling vintage wines