At the beginning of 2018, the following account balances were available:

During 2018 the following transactions occurred:

a- Fodor performed deliveries for customers, all on credit, for $2,256,700. Fodor also made cash deliveries for $686,838.

b- There remains $286,172 of accounts receivable to be collected at December 31, 2018.

c- Fodor purchased advertising of $138,100 during 2018 and debited the amount to prepaid advertising.

d- Supplies of $27,200 were purchased on credit and debited to the supplies account.

e- Accounts payable at the beginning of 2018 were paid early in 2018. There remains $5,600 of accounts payable unpaid at year-end.

f- Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned and paid during 2018 in the amount of $666,142.

g- During the year, Trish Hurd, a principal shareholder, purchased an automobile costing $42,000 for her personal use.

h- One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2018.

i- Property taxes were paid on the land and buildings in the amount of $170,000

j- Dividends were declared and paid in the amount of $25,000.

The following data are available for adjusting entries:

- Supplies in the amount of $13,685 remained unused at year-end.

- Annual depreciation on the warehouse building is $70,000.

- Annual depreciation on the warehouse equipment is $145,000.

- Wages of $60,558 were unrecorded and unpaid at year-end.

- Interest for six months at 6% per year on the note is unpaid and unrecorded at year-end.

- Advertising of $14,874 remained unused at the end of 2018.

- Income taxes of $482,549 related to 2018 are unpaid at year-end.

Required:

1. Post the 2018 beginning balances to T-accounts. Prepare journal entries for transactions athrough j and post the journal entries to T-accounts, adding any new T-accounts you need.

Check Figure: b. Credit to Accounts Receivable = $2,332,028. e. Debit to Accounts Payable = $39,200. h. Debit to Interest Expense = $30,000.

2. Prepare the adjustments and post the adjustments to the T-accounts, adding any new T-accounts you need.

Check Figure: Ending Cash balance = $2,012,324. Ending Interest Payable balance = $30,000.

3. Prepare a statement of earnings.

Check Figure: Net income = $1,125,948.

4. Prepare a statement of retained earnings.

Check Figure: Ending retained earnings = $1,563,323.

5. Prepare a classified statement of financial position.

Check Figure: Total current liabilities = $578,707.

6. Prepare closing entries.

7. Did you include transaction g among Fodor's 2018 journal entries? Why or why not?

S 92,100 Accumulated Depreciation Cash Accounts Receivable Supplies Prepaid Advertising Building (Warehouse) Accumulated Depreciation 580,000 304,975 17,600 30,200 1,000,000 1,400,000 462,375 361,500 (Equipment) 24,600 Land 2,000 Accounts Payable 2,190,000 Wages Payable Notes Payable (due in 2022) (Warehouse) Equipment 280,000 Common Shares 795,000 Rted Earnings, 12/31/2017