Unifying Concepts: The Accounting Cycle The post-closing trial balance of Anderson Company at December 31, 2008, is shown here.

During 2009, Anderson Company had the following transactions:

a. Inventory purchases were $80,000, all on credit (debit Inventory).

b. An additional $10,000 of capital stock was issued for cash.

c. Merchandise that cost $100,000 was sold for $180,000; $100,000 were credit sales and the balance were cash sales. (Debit Cost of Goods Sold and credit Inventory for sale of merchandise.)

d. The notes were paid, including $7,000 interest.

e. $105,000 was collected from customers.

f. $95,000 was paid to reduce accounts payable.
g. Salaries expense was $30,000, all paid in cash.
h. A $10,000 cash dividend was declared and paid.
Required:
1. Prepare journal entries to record each of the 2009 transactions.
2. Set up T-accounts with the proper balances at January 1, 2009, and post the journal entries to the T-accounts.
3. Prepare an income statement for the year ended December 31, 2009, and a balance sheet as of that date. Also prepare a statement of retained earnings.
4. Prepare the entries necessary to close the nominal accounts, including Dividends.
5. Post the closing entries to the ledger accounts [label (i) and (j)] and prepare a postclosing trial balance at December 31, 2009.

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Cash Accounts Receivable Inventory Land Anderson Company Post-Closing Trial Balance December 31, 2008 Debits Credits $ 15,000 20,000 30,000 150,000 Accounts Payable $ 25,000 Notes Payable Capital Stock 35,000 125,000 Retained Earnings Totals $215,000 30,000 $215,000