Account balances taken from the ledger of the Builders' Supply Corporation on December 31. 2002. before adjustment, are listed below. Information relating to adjustments on December 3 1 , 2002, follows:

(a) The inventory on hand is \($87.570.\) Inventory and related accounts are adjusted through Cost of Goods Sold.

(b) Allowance for Doubtful Accounts is to be increased to a balance of \($3,000\).

(c) Buildings are depreciated at the rate of 5% per year.

(d) Accrued selling expenses are \($3,840\).

(e) There are supplies of \($78O\) on hand.

(f) Prepaid insurance relating to 2003 totals \($720\).

(g) Accrued interest on long-term investments is \($240\).

(h) Accrued real estate and payroll taxes are \($900\).

(i) Accrued interest on the mortgage is \($480\).

(j) Income taxes are estimated to be 20% of the income before income taxes.

Instructions:
1. Prepare a trial balance.
2. Journalize the adjustments.
3. Journalize the closing entries.
4. Prepare a post-closing trial balance.

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Cash Accounts Receivable Allowance for Doubtful Accounts. Inventory, December 31, 2001 Long-Term Investments Land Buildings $ 24,000 72,000 1,380 62,000 15,400 69,600 72,000 Accumulated Depreciation-Buildings 19,800 Accounts Payable.. 35,000 Mortgage Payable 68,800 Capital Stock, $10 par. 180,000 Retained Earnings, December 31, 2001 14,840 Dividends... 13,400 Sales 246,000 Sales Returns 4,360 Sales Discounts Purchases 5,400 138,480 Purchase Discounts 2,140 Freight-In Selling Expenses 3,600 49,440 Office Expenses.. 21,680 Insurance Expense 1,440 Supplies Expense 5,200 Taxes-Real Estate and Payroll 7,980 Interest Revenue... 660 Interest Expense.. 2,640