The unadjusted trial balance of Gizmo Shop, Incorporated, on December 31, 1990, the end of the annual accounting period, is as follows:

\section*{Required}
1. Copy the unadjusted trial balance on a work sheet form and complete the work sheet using the information that follows:

a. Ending store supplies inventory, \(\$ 245\).

b. Ending office supplies inventory, \(\$ 185\).

c. Expired insurance, \(\$ 2,465\).

d. Depreciation on the store equipment, \(\$ 5,415\).
\(e\). Depreciation on the office equipment, \(\$ 1,485\).

f. Accrued sales salaries payable, \(\$ 335\); and accrued office salaries payable, \(\$ 240\).
g. Additional income taxes expense, \(\$ 635\).
h. Ending merchandise inventory, \(\$ 49,740\).
2. Prepare a multiple-step classified income statement showing in detail the expenses and the items that make up cost of goods sold.
3. Prepare a retained earnings statement.
4. Prepare compound closing entries for the corporation.
5. In addition to the foregoing, prepare a single-step statement of income and retained earnings with the items condensed as is commonly done in published statements.

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GIZMO SHOP, INCORPORATED Unadjusted Trial Balance December 31, 1990 Cashi $ 5,475 Merchandise inventory. 52,315 Store supplies 920 Office supplies 475 Prepaid insurance. 3,165 Store equipment 55,795 Accumulated depreciation, store equipment $ 5,310 Office equipment. 12,660 Accumulated depreciation, office equipment. 1,385 Accounts payable. 1,195 Salaries payable -0- Income taxes payable. -0- Common stock. $10 par value 60,000 Retained earnings. 21,825 Dividends declared 15,000 Sales 412,230 Sales returns and allowances 2,790 Purchases 251,715 Purchases returns and allowances 1,120 Purchases discounts 4,385 Transportation-in 3,275 Sales salaries expense 36,975 Rent expense, selling space 15,750 Advertising expense. 5,150 Store supplies expense -0- Depreciation expense, store equipment. Office salaries expense -0 37,740 Rent expense, office space 2,250 Insurance expense. -0- Office supplies expense. -0- Depreciation expense, office equipment. -0- Income taxes expense. 6,000 Totals. $507,450 $507,450