Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries.
Baltimore Glass Company
Trial Balance
December 31, 2015
Acct.
No.	Account Title	Debit	Credit
101	Cash	88,450
110	Accounts Receivable	195,613
120	Merchandise Inventory	256,250
125	Supplies on Hand	3,252
130	Prepaid Insurance	3,500
131	Prepaid Rent	7,500
150	Equipment	175,285
160	Accumulated Depreciation		24,260
202	Accounts Payable		72,555
210	Wages Payable		-
301	Capital Stock		220,000
302	Retained Earnings, January 1		211,144
401	Sales		998,250
405	Sales Returns and Allowances	5,145
410	Interest Income		1,500
500	Purchases	560,880
501	Purchases Discounts		4,080
502	Purchases Returns and Allowances		1,200
505	Freight In	4,580
520	Advertising Expense	1,000
530	Sales Salaries Expense	88,600
532	Supplies Expense	-
540	Office Salaries Expense	124,500
550	Utilities Expense	8,594
555	Insurance Expense	-
560	Professional Fees Expense	3,000
570	Depreciation Expense	-
580	Interest Expense	6,840
		1,532,989	1,532,989
Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2015 rent
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet.
8. A physical count of inventory shows a value of $219,100. The periodic inventory method is used.
Do the following requirements below. Create proper headings for each statement.
1. Record adjusting journal entries from information above. It is possible that an item may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made
3. Prepare a classified income statement. Supplies is a sales expense. January 1 inventory was $219,115.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries
Account #	Account Title	debit	credit
Baltimore Glass Company
Trial Balance
42369
Acct.
No.	Account Title	Debit	Credit
101	Cash
110	Accounts Receivable
120	Merchandise Inventory
125	Supplies on Hand
130	Prepaid Insurance
131	Prepaid Rent
150	Equipment
160	Accumulated Depreciation
202	Accounts Payable
210	Wages Payable
301	Capital Stock
302	Retained Earnings, January 1
401	Sales
405	Sales Returns and Allowances
410	Interest Income
500	Purchases
501	Purchases Discounts
502	Purchases Returns and Allowances
505	Freight In
520	Advertising Expense
530	Sales Salaries Expense
532	Supplies Expense
540	Office Salaries Expense
550	Utilities Expense
555	Insurance Expense
560	Professional Fees Expense
570	Depreciation Expense
580	Interest Expense
Baltimore Glass Company
Income Statement
For the Year Ended 12/31/2015
Note on utilities, insurance, professional fees - I did not indicate where these expenses belonged so you may have put some in selling expense also.
Note on depreciation - I did note indicate where this went so some of it could have gone to selling expense or even to cost of goods sold
You would have needed more information to determine that
Note on interest - you could have combined as I did or shown them as separate items.
Baltimore Glass Company
Statement of Retained Earnings
For the Year Ended 12/31/2014
You could have skipped the line for dividends and had just three lines on the statement since it was zero.
Baltimore Glass Company
Balance Sheet
42369
Closing Entries zero out income statement accounts for new year