=+The data needed for year-end adjustments on December 31 are as follows:

Physical merchandise inventory on December 31 . . . . . . . . . . . . . . . . . . . . . . $162,500 Insurance expired during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600 Supplies on hand on December 31:

Store supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,050 Office supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 Depreciation for the year:

Store equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 Office equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Salaries payable on December 31:

Sales salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800 Office salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 3,000 ______ Unearned rent on December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 Instructions 1. Prepare an end-of-period spreadsheet (work sheet) for the fiscal year ended December 31, 2010. List all accounts in the order given.

2. Prepare a multiple-step income statement.