Comprehensive(Appendix 3.1)

Dawson O'Connor is the owner of Miller Island Sales, a distributor of fishing supplies. The following is the balance sheet of the company as of December 31, 2018:

Cash$2,300Accounts payable$6,400Accounts receivable10,400Salaries payable1,200Inventory12,500Equipment8,000Less: Accumulated depreciation(6,500)D. O'Connor, capital19,100$26,700$26,700

Dawson keeps very few records and has asked you to help him prepare the 2019 financial statements for Miller Island Sales. An analysis of the 2019 cash transactions recorded in the company's checkbook indicates deposits and checks as follows:

Total deposits: $173,200; all were collections from customers except for a long-term $10,000 bank loan.

Checks written: $169,800 summarized as follows:

Inventory$123,100Salaries4,250Rent4,800Equipment4,000Note payments (including interest of $650)2,650Office expense3,400Auto expense4,100Withdrawals23,500$169,800

Other information about the company is as follows:

1. Accounts receivable at December 31, 2019, $9,200.
2. Accounts payable at December 31:
3. 2018:Inventory$6,1002019:Inventory$8,500Office expense300Auto expense200$6,400$8,700
4. Salaries payable at December 31, 2019, $1,800.
5. Equipment is depreciated by the straight-line method over a 10-year life. The equipment purchased in 2019 was acquired on July 1. All of the equipment will have zero salvage value at the end of its useful life.
6. Interest payable at December 31, 2019, $140.
7. The company uses a periodic inventory system. Inventory at December 31, 2019, $17,400.

Required:

1. worksheet to summarize the transactions and adjustments of Miller Island Sales for 2019. Enter all amounts as positive numbers. (Hint:Include debit and credit columns for both transactions and adjustments.)