The trial balance of A-Whole-Lot-of-Stuff Wholesale Company contained the acadjusted trial balance and counts shown at December 31, the end of the company’s fiscal year:

Adjustment data:
1. Depreciation is $10,000 on buildings and $9,000 on equipment. (Both are administrative expenses.)
2. Interest of $7,000 is due and unpaid on notes payable at December 31.
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, 2001.

Transcribed Image Text:

A-WHOLE-LOT-OF-STUFF WHOLESALE COMPANY Trial Balance December 31, 2001 Debit Credit Cash Accounts Receivable Merchandise Inventory Land Buildings $ 33,400 37,600 110,000 92,000 197,000 Accumulated Depreciation-Buildings Equipment Accumulated Depreciation-Equipment $ 57,000 83,500 42,400 Notes Payable Accounts Payable Common Stock 50,000 37,500 200,000 Retained Earnings 67,800 Dividends 10,000 Sales 922,100 Sales Discounts 4,600 Cost of Goods Sold 709,900 Salaries Expense 69,800 Utilities Expense 9,400 Repair Expense 8,900 Gas and Oil Expense 7,200 Insurance Expense 3,500 $1,376,800 $1,376,800