Below are the unadjusted general ledger accounts of T&J Appliance Store for the current year.

Cash	277,830
Notes Receivable	60,000
Accounts Receivable	275,000
Allowance for Bad Debts	2,000
Merchandise Inventory, beginning	1,578,650
Delivery Equipment	500,000
Accumulated Depreciation-Delivery Equipment	50,000
Store Equipment	150,000
Accumulated Depreciation-Store Equipment	15,000
Office Equipment	50,000
Accumulated Depreciation-Office Equipment	10,000
Accounts Payable	976,450
Notes Payable	100,000
Tom & Jerry, Capital	1,503,945
Tom & Jerry, Drawing	60,000
Sales	3,760,600
Sales Returns & Allowances	37,500
Sales Discounts	50,650
Purchases	2,625,250
Purchase Returns & Allowances	26,250
Purchase Discounts	39,160
Freight In	60,250
Sales Salaries	215,675
Advertising Expense	33,000
Commission Expense	75,250
Delivery Expense	112,500
Miscellaneous Selling Expenses	12,450
Office Salaries	125,900
Rent Expense	110,000
Insurance Expense	24,000
Office Supplies Expense	22,250
Taxes and Licenses	10,250
Misc. General Expenses	6,200
Interest Income	1,200
Interest Expense	12,000

T&J Appliances Store is in its 2^nd year of operations. The capital of Tom & Jerry at the beginning of the current year was 1,405,945. Below are the data needed for adjustments on December 31:

1. The physical inventory of merchandise as of December 31, amounted to 1,650,620.
2. Interest at 12% per annum on the 60,000 Notes Receivable dated October 2, was due.
3. 4 months of insurance were paid on November 1 of the current year.
4. Supplies inventory at the end of December amounted to 4,850
5. The Delivery Equipment and Store Equipment have an estimated useful life of ten (10) years.
6. Office Equipment has an estimated useful life of five (5) years.
7. It is estimated that 1% of sales will be uncollectible
8. Accrued Payables as of December 31 were as follows:

Unpaid Sales Salaries	10,000
Unpaid Office Salaries	5,000
Accrued Rent Expense	10,000
Accrued Advertising Expense	3,000

1. The adjusting journal entries for December 31 of the current year (20 pts.)
2. A ten-column worksheet for the year ended December 31 of the current year (50 pts)
3. An Income Statement for the year ended December 31 of the current year using a multiple-step format. (10 pts)
4. A Balance Sheet as of December 31 of the current year (10 pts)
5. The closing journal entries on December 31 of the current year (10 pts)