ABC Corporation
Unadjusted Trial Balance
December 31, 2014
	Debit	Credit
Cash	$ 575,232
Short term investments	167,000
Fair value adjustment (Trading)	-
Accounts receivable	190,300
Allowance for doubtful accounts		$ -
Inventory	-
Purchases	350,000
Prepaid insurance	24,600
LT (Debt) investments (HTM)	177,824
Land	75,000
Building	150,000
Accumulated depreciation: building		4,000
Equipment	60,000
Accumulated depreciation: equipment		20,000
Patent	37,500
Accounts payable		75,240
Notes payable		235,000
Income taxes payable		63,800
Unearned rent revenue		36,000
Bonds Payable		800,000
Premium on Bonds Payable		61,771
Common stock		86,000
PIC In Excess of Par-Common Stock		13,000
Retained earnings		-
Treasury stock	49,000
Dividends	41,000
Sales Revenue		792,945
Advertising expense	8,400
Wages expense	67,600
Office expense	21,700
Depreciation expense	24,000
Utilities expense	31,000
Insurance expense	73,800
Income taxes expense	63,800
	$ 2,187,756	$ 2,187,756

ADJUSTMENTS NEEDED:

4	Per timecards, from the last payroll date through December 31, 2014, ABC's employees have worked a total of 250 hours.
	Including payroll taxes, ABC's wage expense averages about $51 per hour. The next payroll date is January 5, 2015.
	The liability for wages payable must be recorded as of 12/31/14.
5	On November 30, 2014, ABC borrowed $235,000 from American National Bank by issuing an interest-bearing note payable.
	This loan is to be repaid in three months (on February 28, 2015), along with interest computed at an annual rate of 6%.
	The entry made on November 30 to record the borrowing was: (for Statement of Cash Flow purposes, consider a financing item)
		Dr Cash			235,000
			Cr Notes payable			235,000
	On February 28, 2015 ABC must pay the bank the amount borrowed plus interest.
	Assume the beginning balance for Notes Payable is correct.
	Interest through 12/31/14 must be accrued on the $235,000 note.
6	ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete
	physical inventory at year-end. A physical count was taken on December 31, 2014, and the inventory on-hand at
	that time totaled $75,000, which reflects historical cost.
	Record the 2014 Cost of Goods Sold and the 12/31/14 Inventory adjustment.

Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and net realizable value at a total inventory level.
A review of inventory data further indicated that the current retail sales value of the ending inventory is $110,000 and estimated costs of
completion and shipping is 15% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending inventory
using the Loss and Allowance methodology. For Income Statement presentation purposes, be sure to use the Loss Method for accounting
for adjustments of inventory to market value.