Presented below is information pertaining to Delsnyder Specialty Foods, a calendar-year sole proprietorship, maintaining its books on the cash basis during the year. At year-end, however, A. J. Delsnyder€™s accountant adjusts the books to the accrual basis only for sales, purchases, and cost of sales and records depreciation to more clearly reflect the business income.

During 2016, Delsnyder signed a new 8-year lease for the store premises and is in the process of negotiating a loan for remodeling purposes. The bank requires Delsnyder to present financial statements for 2016 prepared on the accrual basis. To do so, Delsnyder€™s accountant obtained the following additional information for 2016:
1. Amounts due from customers totaled $7,900 at December 31.
2. A review of the receivables at December 31, disclosed that an allowance for doubtful accounts of $1,100 should be provided. Delsnyder had recorded no bad debt losses from the inception of the company through December 31.
3. The inventory amounted to $23,000 at December 31, based on a physical count of goods priced at cost. No reduction to market was required.
4. On signing the new lease on October 1, 2016, Delsnyder paid $8,400, representing 1 year€™s rent in advance for the lease year ending October 1, 2017. The $7,500 annual rental under the old lease was paid on October 1, 2015, for the lease year ended October 1, 2016.
5. On April 1, 2016, Delsnyder paid $2,400 to renew the comprehensive insurance coverage for 1 year. The premium was $2,160 on the old policy, which expired on April 1, 2016.
6. Depreciation on the equipment was computed at $5,800 for 2016.
7. Unpaid vendors€™ invoices for food purchases totaled $8,800 at December 31.
8. Accrued expenses at December 31, 2015 and December 31, 2016, were as follows:

After obtaining the preceding information, Delsnyder€™s accountant prepared the following partially completed worksheet:

Required:
1. Complete the preceding worksheet to convert Delsnyder Specialty Foods€™s trial balance to the accrual basis for the year ended December 31, 2016.
2. Prepare a statement showing the changes in A. J. Delsnyder, Capital, for the year ended December 31, 2016.

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Trial Balance December 31, 2016 Cash Accounts Receivable, 12/31/15 Inventory, 12/31/15 Equipment Accumulated Depreciation, 12/31/15 Accounts Payable, 12/31/15 Payroll Taxes Withheld A J Delsnyder, Withdrawals A. J. Delsnyder, Capital, 12/31/15239180 Jawad Sa33,650 $18,500 4,500 20,000 35,000 $ 9,000 4,800 24,000 87,000 Purchases Salaries Payroll Taxes 82700 29,500 2,900 8,400 3,900 2,400 3,500 Miscelianeous Expense Insurance Utistios $235,300 $285,300 12/31/15 12/31/16 Payroll taxes Salaries Utilities $250 375 275 $400 510 450 Cash Basis Adjustments Accrual Basis Accounts Debit Credit Debit Credit Credit Cash 18,500 4,500 4Accounts Receivable 5 Allowance for Doubtul Accounts 20,000 35,000 Accumulated Rent Prepaid Insurance Accounts Payable 12 Accrued E 3 P 14A. J Delsnyder Withdrawals 5A.J.Delsnyder Ca 16 1 Sales 18 Purchases Taxes Withheld 850 24,000 33.650 197,000 Income Summary -Inventory 2Slaries 21 P 22Rent 23 Miscellanecus Expenses 4 Insurance 2Utlities 29,500 Taxes LiSprecdaticn 2 Bad Debts Totals 235,300 235,300