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The Sandhill Shop, owned by Andrew John, sells skateboards in the summer and snowboards in the winter

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The Sandhill Shop, owned by Andrew John, sells skateboards in the summer and snowboards in the winter. The shop has an August 31 fiscal year end, and uses a perpetual inventory system and the earnings approach. On August 1, 2021, the company had the following balances in its general ledger: $21,385 64,125 3,750 70,800 A. John, Drawings Sales Rent revenue Sales returns and allowances $52,800 485,500 1,200 11,420 Cash Merchandise inventory Supplies Equipment Accumulated depreciation- equipment Accounts payable Unearned revenue Notes payable A. John, capital 13,275 Cost of goods sold 301,010 12,650 4,680 42,000 58.400 Salaries expense Rent expense Insurance expense Interest expense 68,200 18,150 4,140 1,925 During August, the last month of the fiscal year, the company had the following transactions: Aug. 1 2 4 5 5 8 9 10 11 Paid $1,650 for August's rent. Paid $6,500 of the amount included in Accounts Payable. Sold merchandise costing $7,900 for $12,000 cash. Purchased merchandise on account from Orange Line Co., n/30, FOB shipping point, for $24,000. Paid freight charges of $530 on merchandise purchased from Orange Line Co. Purchased supplies on account for $360. Refunded a customer $425 cash for returned merchandise. The merchandise had cost $262 and was returned to inventory. Sold merchandise on account to Spider Company for $16,050, terms 2/10,n/30, FOB shipping point. The merchandise had a cost of $9,705. Paid Orange Line Co.for half of the merchandise purchased on August 5. Spider Company returned $750 of the merchandise it purchased. Sandhill Shop issued Spider a credit to its account. The merchandise had a cost of $461 and was returned to inventory. Paid salaries, $3,100. Spider Company paid the amount owing. Purchased $9,700 of merchandise from Rainbow Option Co. on account, terms 2/10, n/30, FOB destination. Returned $800 of the merchandise to Rainbow Option Co. and received a credit on the account. Received $520 cash in advance from customers for merchandise to be delivered in September. Paid salaries, $3,100. Paid Rainbow Option Co. the amount owing. Andrew John withdrew $4,900 cash. 12 15 19 21 23 24 30 30 31
Adjustment and additional data: 1. 2. 3. A count of supplies on August 31 shows $755 on hand. The equipment has an estimated eight-year useful life. Remember that adjusting entries are done annually, not monthly Of the notes payable, $6,000 must be paid on September 1 each year. (1) An analysis of the Unearned Revenue account shows that $3,750 has been earned by August 31. (2) A corresponding entry of $2,325 for Cost of Goods Sold will also need to be recorded for these sales. Interest accrued on the note payable to August 31 was $175. A count of the merchandise inventory on August 31 shows $76,560 of inventory on hand. 4. 5. 6. Record the adjustments required at August 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.)
Prepare a post-closing trial balance at August 31, 2021. (Do not list those accounts that have zero ending balance.) THE SANDHILL SHOP Post-closing Trial Balance Debit Credit $ >