Additional information: 1. The beginning balance of accounts receivable is $12,750. 2. The amount of total assets at the beginning of the year is $145,921. 3. Salaries expense is 65% selling and 35% administrative. 4. Insurance expense is 50% selling and 50% administrative. 5. A physical inventory was conduced for year ended December 31, 2008 and the inventory was valued at $38,100. 6. Rent expense, utilities expense, and property tax expense are administrative expenses. 7. $15,000 of the notes payable is due for payment next year.

1) Journalize the adjusting entries that were made by the company. 2) Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of December 31, 2008. 3) Journalize the closing entries. 4) Prepare a post-closing trial balance. 5) Show work for: a) Current Ratio b) Quick Ratio c) Working Capital d) Accounts Receivable Turnover e) Average Collection Period f) Inventory Turnover g) Days in Inventory h )Debt to Total Assets Ratio i) Gross Profit Ratio j) Profit Margin Ratio k) Return on Assets Ratio l) Asset Turnover Ratio

Accumulated Depreciation-Delivery Equipment Accumulated Depreciation- Store Equipment Depreciation Expense-Delivery Equipment Depreciation Expense-Store Equipment Merchandise Inventory Property Tax Expense 630,500 Purchase Returns and Allowances Sales Commissions Payable Sales Returns and Allowances Property Taxes Payable