A B D E F G H 1 J K L N O 3 4 Axelrod Retail Company Trial Balance 12/31/20 5 6 Cr 7 8 Dr 70,300 85,800 175,000 16,400 9 10 11 230,000 12 500,000 13 150,000 14 208,750 15 16 17 Cash Accounts receivable Inventory Supplies Land Buildings Accumulated depr. Buildings Equipment Accumulated depr. Equipment Notes payable Accounts payable Common stock Retained eaarnings Dividends Sales revenue Sales returns & allowances Sales discounts Cost of goods sold Salaries and wages expense Utilities expense Maintenance & repairs expense Advertising expense Telephone expense 98,000 140,000 43,750 400,000 168,000 18 19 20 25,000 21 2,396,000 22 23 24 25 26 90,840 15,000 1,774,750 128,250 28,500 22,160 13,000 12,000 3,395,750 27 28 29 30 3,395,750 31 32 Adjustment data: 33 1. Depreciation is $20,000 on buildings and $17,500 on equipment. + = Insert Conditional Formatting Calibri (Body) 14 A- A General = Format as Table - Delete Paste B I A T $ % % ) .00 .00 .0 Editing E Cell Styles ITT Format K41 fx A B D E F G H 1 1 K L M 31 32 Adjustment data: 33 1. Depreciation is $20,000 on buildings and $17,500 on equipment. 34 2. Interest on the notes is accrued and paid each year. Interest totaling $6,600 should be accrued for 2020. 3. Supplies on hand at year end amounted to $6,700. 36 4. Income tax due and unpaid at December 31 is $68,000. 35 37 41 38 Other data: Notes payable consists of two notes. One of the notes is for $40,000 and is due 10/1/21; the other is due 3/31/24. 39 40 Required: a. Journalize the adjusting entries. Creat T accounts to enter the balances in the Trial Balance and to post the adjusting entries. Prepare an adjusted trial balance. d. Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2020. Calculate the gross profit rate and the profit margin and explain what each means. 42 b. 43 C. 44 45 e. 46 47 48 49 50 51 52 53 54 55 56 57 58