REVIEWING THE ACCOUNTING CYCLE. Tarkington Wholesalers sells merchandise to retail grocery stores in the Northeast. At the end of 19x2, the following unadjusted account balances were available: lol

REQUIRED:
1. Prepare T-accounts and post the unadjusted account balances.
2. Prepare adjustments and post them to the T-accounts, adding any additional accounts you need.
3. Prepare a classified income statement, a statement of changes in retained earnings, and a classified balance sheet from the adjusted account balances.
4. Prepare the closing entries.

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Cash Accounts receivable Inventory Building, warehouse Equipment, warehouse Accumulated depreciation, warehouse Accumulated depreciation, warehouse equipment Land Accounts payable 21,300 317,500 273,400 2,150,000 280,000 765,000 580,000 224,375 147,800 Notes payable (due in 19x6) Capital stock Retained earnings, 12/31/x1 Dividends Sales revenue Cost of goods sold Advertising expense Wages expense Utilities expense Interest expense The following information is available for adjustments: 900,000 1,400,000 77,900 25,000 4,256,700 2,942,600 138,100 726,200 14,300 44,625 a) The warehouse has an expected life of 25 years and a residual value of $400,000. b) The warehouse equipment has an expected life of 5 years and a residual value of $40,000. e) Wages of $14,900 are unrecorded and unpaid at year-end. d) Utilities costs of $1,600 are unrecorded and unpaid at year-end. e) At year-end, 5 months' interest at 8.5% is unrecorded and unpaid on the notes payable. f) Income taxes at an amount of 30% of income before taxes are unrecorded and unpaid at year-end.