Ella's Clothing and More, Inc. (ECMI) (50 points)

Ella Gitzke purchased Ella's Clothing and More Inc. (ECMI) in October of 2021 and has enjoyed working in the quaint community of Verona, Wisconsin. Along with several friends, Ella set the store up using a corporate structure. Ella began by purchasing many ECMI items but found that her customers were very quick to buy certain types of clothing from the Internet, so she started to services as a personal shopper to help them to acquire parts of an ensemble that it did not make sense for her to stock. Unlike the sales of clothing which generate Sales Revenue, this activity generates Service Revenue. To help Ella to better understand the results of his operations for 2021, she would like you to prepare a set of financial statements for him on December 31, 2021. The accounts and amounts (normal balances) at the end of 2021 for BGBI are presented on the following page.

Additional Information

Earned but unpaid salaries at year end amounted to $8,750.

$9,320 of unearned service revenue was earned during the year.

Additional supplies used during the year amounted to $1,750.

Additional depreciation of $8,170 on the furniture and fixtures was not recorded.

Additional interest revenue of $450 was earned but not received.

Prepaid rent at year end was $14,300.

Total interest expense for the year was $2,750.

ECMI did a physical inventory on December 31 and found $101,350 goods on hand. ECMI uses the perpetual inventory system.

ECMI declared a cash dividend of $25,000 on December 31. The dividend will be paid on January 15, 2020.

Ella's Clothing and More, Inc. (ECMI)

Accounts Payable 2,400

Accounts Receivable 5,400

Accumulated Depreciation 18,700

Capital Stock 412,000

Cash 75,048

Cost of Goods Sold 500,000

Depreciation Expense 14,300

Dividends 30,300

Freight In 15,789

Furniture & Fixtures 225,760

Interest Expense 1,237

Interest Revenue 450

Merchandise Inventory 176,000

Notes Payable: Long Term 8,000

Notes Receivable: Current 20,000

Prepaid Rent 78,000Rent Expense 88,700

Retained Earnings 56,000

Salary Expense 170,000

Sales Discounts 22,650

Sales Returns & Allowance 3,400

Sales Revenue 922,101Supplies 3,400

Supplies Expense 2,300

Unearned Service Revenue 17,000

Utilities Expense 4,367

Prepare a 10-column worksheet