Advertising Expense Amortization Expense $ 678,900 Accounts Payable $ 133,000 $ 10,500 Accounts Receivable $ 305,000 Bad Debt Expense $ 14,000 Accumulated Depreciation- Office Equipment $ 102,000 Cost of Merchandise Sold $ 2,160,000 Accumulated Depreciation-Store Equipment $ 420,000 Depreciation Expense - Office Equipment $ 68,900 Allowance for Doubtful Accounts $ 12,300 Depreciation Expense-Store Equipment $ 124,300 Bonds Payable, 8%, due December 31, 2030 $ 500,000 Equity Income in AM Coffee $ 57,000 Cash and Cash Equivalents $ 235,000 Income Tax Expense $ 132,800 Common Stock Dividends $ 44,000 Common Stock, $20 par (50,000 shares authorized, 45,000 shares Interest Expense $ 136,000 issued) $ 900,000 Interest Revenue $ 18,000 Excess of Issue price over par (CS) $ 1,450,000 Loss on Disposal of Fixed Asset $ 23,000 Excess of Issue price over par (PS) $ 50,000 Misc. Selling Expense $ 26,500 Interest Payable $ 40,000 Office Salaries Expense $ 325,000 Investment in AM Coffee (equity method) $ 565,000 Payroll Tax Expense $ 110,000 Land $ 1,850,000 Rent Expense $ 425,600 Merchandise Inventory-at lower of cost (FIFO) or market $ 120,000 Sales $ 5,402,100 Notes Payable $ 1,400,000 Sales Salaries Expense $ 825,000 Notes Payable (current portion) $ 200,000 Unrealized Gain on Trading Investments $ 5,000 Office Equipment $ 350,000 Patents $ 140,000 Payroll Taxes Payable $ 16,400 Preferred 10% Stock, $50 par (6,000 shares authorized and issued) $ 300,000 Preferred Stock Dividends $ 30,000 Prepaid Insurance $ 24,000 Retained Earnings, January 1, 2018 $ 852,700 Salaries and Wages Payable $ 42,000 Store Equipment $ 2,650,000 Trading Investments (at cost) $ 420,000 Treasury Stock (1,000 shares at cost) $ 46,000 Unamortized Discount on Bonds Payable $ 16,000 Valuation Allowance for Trading Investments $ 45,000