The following data are for Bayer Lamp Company:

1. Depreciation expense on the store building is $8,800. 2. Depreciation expense on the store fixtures is $22,240. 3. Accrued sales salaries are $5,600. 4. Insurance expired in 1999 is $10,000. 5. Cost of merchandise inventory on hand December 31, 1999, is $222,000.

Required Prepare the following:

a. A work sheet for the year ended December 31, 1999. Refer to the chart of accounts on the inside covers of the text for any other account numbers you need.

b. A classified income statement. The only administrative expenses are office salaries and insurance. The building depreciation is on the store building.

c. A statement of retained earnings.

d. A classified balance sheet.

e. The required closing entries.

Transcribed Image Text:

BAYER LAMP COMPANY Trial Balance December 31, 1999 Acct. No. Account Title 100 Cash. Debits $ 228,800 Credits 103 Accounts Receivable 193,200 105 Merchandise Inventory, January 1, 1999 166,400 108 Prepaid Insurance 11,600 130 Land. 240,000 140 Buildings 440,000 141 Accumulated Depreciation-Buildings. $ 132,000 174 Store Fixtures 222,400 175 Accumulated Depreciation-Store Fixtures. 44,480 200 Accounts Payable. 151,600 300 Capital Stock. 400,000 310 Retained Earnings, 1/1/99. 480,720 410 Sales 2,206,000 411 Sales Discounts 14,800 412 Sales Returns and Allowances 8,000 418 Interest Revenue 1,600 500 Purchases. 1,251,600 501 Purchase Discounts. 10,400 502 Purchase Returns and Allowances 5,600 503 Transportation-in 29,200 505 Advertising Expense 48,000 508 Sales Salaries Expense 256,000 509 Office Salaries Expense. 296,000 519 Delivery Expense. 540 Interest Expense. 18,400 8,000 $3,432,400 $3,432,400