Self-test Miskien & Co. Trial balance at 31 December 2009 Cash 6,700 Debtors 23,800 Insurance 3,400 Stock 1 January 2009 1,950 Land 50,000 Building at cost 141,500 Accumulated depr – buildings 91,700 Equipment at cost 90,100 Accumulated depr – equipment 65,300 Creditors 7,500 Interest receivable 6,000 Capital account – Miskien 81,500 Drawings – Miskien 10,000 Sales 218,400 Purchases 80,200 Electricity and gas 28,200 Advertising 19,000 Repairs 11,500 Salaries 4,050 470,400 470,400 The following year-end adjustments need to be made:

(i) Prepaid insurance at 31 December 2009 800

(ii) Stock on hand at 31 December 2009 450

(iii) Depreciation of buildings for the year 1,620

(iv) Depreciation of equipment for the year 5,500

(v) Interest due to Miskien at 31 December 2009 500

(vi) Accrued salaries and wages 31 December 2009 2,000

(vii) Sales delivered but not invoiced at 31 December 2009 2,750 You are required to show the above adjustments as journal entries and then to prepare an adjusted trial balance.

You are then required to prepare the profit and loss account and balance sheet for the year.