During the first month of operations, the following transactions were completed by ABC Corporation:
Dec 1	Issued 25,000 shares of $5 par common stock for cash of $18 per share.
Dec 3	ABC Company pays cash for Land and a building to be used in operations. The land cost $100,000 and the building cost $75,000.
Dec 4	Purchased $12,000 of store fixtures on the account.
Dec 5	Purchased merchandise inventory from XYZ Company for $115,000, terms n/EOM, FOB destination.
Dec 6	ABC sold $50,000 of merchandise on account, 2/10, n/30, FOB shipping point. The cost of merchandise sold was $20,000.
Dec 9	Paid advertising costs of $10,000 to promote new business.
Dec 10	Purchased merchandise inventory from QRS Company for $90,000, terms n/30, FOB destination.
Dec 11	Purchased 550 shares of treasury stock for $15 per share.
Dec 12	ABC's Board of Directors declared a $32,000 cash dividend.
Dec 13	Paid $900 for utilities.
Dec 15	Paid cash dividends to common shareholders.
Dec 16	Received payment for merchandise sold on Dec. 6th.
Dec 23	ABC sold $75,000 of merchandise on account, 2/10, n/30, FOB shipping point. The cost of merchandise sold was $35,000.
Dec 24	Sold 250 shares of treasury stock for $20 per share.
Dec 31	Paid balance owed to XYZ Company for purchases on Dec 5.
At the end of December, the following adjustment data were assembled.
a	After a physical count of inventory, it was determined that $148,500 of inventory exists at December 31.
b	Based on an analysis of A/R, ABC Company anticipates 3% of A/R to be uncollectible.
c	Buildings are depreciated using the straight-line method with no salvage value for 30 years. Round to the nearest dollar.
d	Store Fixtures are depreciated using the straight-line method with no salvage value for 5 years. Round to the nearest dollar.
Directions:
1	Journalize the routine transactions above on the Journal-December tab.
2	Use the Unadjusted Trial Balance and adjusting information provided above to journalize the 4 adjusting entries on the Journal - December tab (below the routine entries).
3	Use the Adjusted Trial Balance provided to prepare financial statements for ABC Corporation. You are only responsible for preparing the Income Statement, Statement of Retained Earnings, and classified Balance Sheet. These should be completed on the Financial Statements tab.

ABC Corporation Unadjusted Trial Balance Credit $ $ 102,000 December 31, 20xx Debit Cash $ 162,850 Accounts Receivable $ 73,500 Allowance for Doubtful Accounts Merchandise Inventory $ 150,000 Land $ 100,000 Building $ 75,000 Accumulated Depreciation - Building Store Fixtures $ 12,000 Accumulated Depreciation - Store Fixtures Accounts Payable Cash Dividends Payable Common Stock, $5 Par Value Paid-in Capital in Excess of Par - Common Stock Paid-in Capital - Treasury Stock Retained Earnings Cash Dividends $ 32,000 Treasury Stock $ 4,500 Sales Cost of Merchandise Sold $ 55,000 Advertising Expense $ 10,000 Depreciation Expense - Building $ $ Depreciation Expense - Store Fixtures $ 900 Utilities Expense Bad Debt Expense $ $ $ $ $ $ $ $ 125,000 325,000 1,250 $ 122,500 $ 675,750 $ 675,750 ABC Corporation Adjusted Trial Balance December 31, 20xx Credits Debits $ 162,850 $ 73,500 $ 2,205 $ 148,500 $ 100,000 $ 75,000 $ 208 $ 12,000 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Land Building Accumulated Depreciation - Building Store Fixtures Accumulated Depreciation - Store Fixtures Accounts Payable Cash Dividends Payable Common Stock, $5 Par Value Paid-in Capital in Excess of Par - Common Stock Paid-in Capital - Treasury Stock Retained Earnings Cash Dividends Treasury Stock Sales Cost of Merchandise Sold Advertising Expense Depreciation Expense - Building Depreciation Expense - Store Fixtures Utilities Expense Bad Debt Expense $ 200 $ 102,000 $ $ 125,000 $ 325,000 $ 1,250 $ $ $ 32,000 4,500 $ 122,500 $ $ $ $ $ $ 56,500 10,000 208 200 900 2,205 $ 678,363 $ 678,363 pay: 100 000 ha 0 ABC Corporation is a retail company that begins operations on December 1, 20xx, which is incorporated in the state of NC. The ABC Corporation is authorized to issue 100,000 shares of $5 par common stock. The company uses a perpetual inventory system. The following is a chart of accounts for ABC Corporation. As a new business, all beginning balances are $0. 210 Accounts Payable 113 Accounts Receivable 131 Accumulated Depreciation - Building 141 Accumulated Depreciation - Store Fixtures 520 Advertising Expense 114 Allowance for Doubtful Accounts 531 Bad Debt Expense 130 Building 110 Cash 330 Cash Dividends 230 Cash Dividends Payable 310 Common Stock, $5 Par Value 510 Cost of Merchandise Sold 522 Depreciation Expense - Building 525 Depreciation Expense - Store Fixtures 120 Land 115 Merchandise Inventory 312 Paid-in Capital - Treasury Stock 311 Paid-in Capital in Excess of Par - Common Stock 320 Retained Earnings 410 Sales 140 Store Fixtures 340 Treasury Stock 530 Utilities Expense