Adjustments: 1. After doing the year-end count of office supplies, Myers found that $300 of office supplies remained. 2. After doing the year-end count of inventory, Myers determined that there was $53,200 in ending inventory. 3. $1,400 of the prepaid insurance has expired at year end. 4. Depreciation of the office equipment for the year was $12,500. 5. Depreciation of the store equipment for the year was $15,000. 6. The $34,000 in unearned revenue was for orders that were paid for in advance. At year end, 1/2 of the prepaid orders were fulfilled. 7. Wages that have accrued for the year but have not been paid yet totaled $12,000. This should be split evenly between Sales Salaries and Office Salaries.

Requirement 2: Prepare the multi-step income statement, statement of retained earnings, and the classified balance sheet for Myers Home Supply Company for the year ended December 31, 2020.

Meyer's Home Supply Company Worksheet December 31, 2020 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Account $ Cash Accounts Receivable Office Supplies Prepaid Store Insurance Inventory Store Equipment Accumulated Depreciation - Store Equipment Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable Unearned Revenue Note Payable (Due in 3 years) Common Stock Retained Earnings Dividends Sales Sales Returns and Allowances Cost of Goods Sold Advertising Expense Depriciation Expense - Office Equipment Depreciation Expense - Store Equipment Sales Salaries Expense Office Salaries Expense Sells Department Rent Expense Administration Rent Expense Store Insurance Expense Office Supplies Expense Trail Balance Debit Credit 39,000 45,000 1,300 2,400 55,500 130,000 $ 60,000 88,000 32,500 38,300 34,000 50,000 60,000 50,700 10,000 885,200 36,000 510,000 36,000 78,500 120,000 32,000 27,000 $ 1,210,700 $ 1,210,700