1.Presented below is the Trial Balance for Woolworths on December 31, 2019.

Woolworths

Trial Balance

December 31, 2019

SL

Account Title

Debit($)

Credit($)

1.

Cash

4000

2.

Accounts Receivable

5600

3.

Prepaid Rent

4200

4.

Supplies

2400

5.

Equipment

36000

6.

Accumulated Depreciation-Equipment

2600

7.

Accounts Payable

2400

8.

Notes Payable

15000

9.

Unearned Revenue

8920

10.

Insurance Payable

4000

11.

Owner's Capital

16080

12.

Owner's Drawings

6400

13.

Sales Revenue

46000

14.

Rent Expense

1000

15.

Salaries and Wages Expense

7720

16.

Cost of Goods Sold

15000

17.

Sales Discount

4000

18.

Casualty from Vandalism

1200

19.

Patents

4300

20.

Investment in Real Estate

2180

21.

Land

5000

22.

Long Term Loan

4000

Total

99000

99000

Additional Information:

1. Woolworths sold goods to a client in December 2019. The client will be billed $800.

2. Prepaid rent is a 6 months policy starting December 1, 2019.

3. $1100 of supplies has been used during the month.

4. Depreciation on equipment is $500 per month.

5. December 31 is a Thursday, and employees are paid on Sundays. Woolworths has three employees, who are paid $1800 each for a six day work week. (Tuesday is their day off).

6. Woolworths borrowed $15,000 by signing a 20%, one-year note on December 1, 2019.

7. $1000 of the balance in the unearned revenue account remains unearned at the end of the month.

Instructions:

a. A journal form, the adjusting entries for the seven transactions listed for Woolworths. (14)

b.Post the adjusting entries to the T- Accounts. (7)

c.an adjusted trial balance on December 31, 2019. (9)

d. a multiple-step income statement for the month ending December 31, 2019. (7)

e.Prepare the classified balance sheet on December 31, 2019. (8)