The trial balance of Save-Mart Wholesale Company contained the accounts shown at December 31, the end of

Question:

The trial balance of Save-Mart Wholesale Company contained the accounts shown at December 31, the end of the company's fiscal year.


The trial balance of Save-Mart Wholesale Company contained the a


Adjustment data:
1. Depreciation is $12,000 on buildings and $9,000 on equipment. (Both are operating expenses.)
2. Interest of $4,500 is due and unpaid on notes payable at December 31.
3. Income tax due and unpaid at December 31 is $20,000.
Other data: $15,000 of the notes payable are payable next year.

Instructions
(a) Journalize the adjusting entries.
(b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31,2010.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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