On November 30, 2013, Davis Company had the following account balances

During the month of December, Davis entered into the following transactions:
DateTransaction
Dec. 4 Made cash sales of $3,000; the cost of the inventory sold was $1,800.
7 Purchased $2,400 of inventory on credit.
11 Customer returned $600 (retail price) of inventory for credit to its account; the cost of the inventory returned was $360.
14 Collected $900 of accounts receivable.
18 Sold land for $7,800; the land originally cost $5,000
20 Made credit sales of $4,000; the cost of the inventory sold was $2,400.
21 Returned $360 of defective inventory to supplier for credit to the Davis Company's account and reduced the inventory account.
27 Purchased $1,250 of inventory for cash.
28 Paid $1,100 of accounts payable.
31 Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note for the balance.
Required:
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information:
(a) Accrued salaries at year-end total $1,200;
(b) For simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with no residual value;
(c) Supplies on hand at the end of the year total $630;
(d) Bad debts expense for the year totals $830;
(e) The income tax rate is 30%; income taxes are payable in the first quarter of 2014.
4. Prepare the company's financial statements for 2013.
5. Prepare the 2013 (a) adjusting and (b) closing entries in the general journal.

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Debit Credit Cash $ 3,090 Accounts Receivable Allowance for Doubtful 9,900 $ 100 Accounts Inventory Supplies Land Buildings and Equipment Accumulated Depreciation Accounts Payable 17,750 1,400 9,000 42,000 4,200 10,700 Debit Credit Common Stock, No-par (2,000 shares) Retained Earnings (1/1/2013) Dividends $20,000 42,400 $ 2,000 Sales Revenue Sales Retums Cost of Goods Sold Salaries Expense Advertising Expense Other Expenses 76,000 6,300 36,860 12,500 8,100 4,500