End of the year balances (12/31/2015):Cash $100,000.Equipment $300,000.Building $400,000.Treasury Stock $10,000. Notes Payable (ST) $30,000.Mortgage Payable (LT) $30,000.APIC $200,000.Accounts Payable $25,000. Tax Payable (ST) $10,000.

Other info:

Inventory includes the following:Beginning balance of $22,000 (1000 units at $22).Purchases included: 1000 units of inventory occurred on June 1 for $23/unit; and 1000 units on December 1 for $24/unit.2000 units were sold for $80/unit on December 20^th($120,000 in cash was received and the remaining will be collected in the following year).The net realizable value for receivable after the aging method indicated a $30,000 value. Both Accounts receivable and the related Allowance have a zero beginning balance.The company uses LIFO.

Supplies at the beginning of the year was $0.The amount of supplies purchased during 2015 was $30,000.End of the year supply count showed that there was still $18,000 remaining of supplies on hand.

Equipment was purchased at the beginning of the year for $300,000.There was an estimated $20,000 salvage/residual value.Straight-line depreciation is used over a 10 year life.Building was purchased at the beginning of the year for $400,000.Salvage/residual value of $20,000 exists.Straight-line is used over a 20 year life.

We sold equipment in 2015 that was purchased in 2014.At the time of the sale, the asset was on the books at a historical cost of $30,000; the related accumulated depreciation on the books at the time of the sale was $5,000.We sold it for $45,000 (we received cash)

We needed funds, so we signed a note on 7/1/2015 for $30,000.We agreed to pay back the note at the end of next year, including 10% interest, payable each 12/30.This is a short-term note.

We needed more capital so we issued bonds at 95% of par value (par = $100,000) on 12/31/15, meaning we received $95,000 of cash.We wont amortize or accrue interest since we issued at the end of the year.Market rate was 9% and our stated rate of interest was 8%

For purposes of the balanced sheet we have authorized 500,000 shares of stock, but only 400,000 shares of common stock are issued.The par value was $1.00

Retained earnings at the beginning of year was $35,500.Dividends paid during the year were $35,000.

Returns for defective items amounted to $2,000.Sales discounts totaled $8,000.

Tax expense totaled $10,000

1. Prepare Origination Entries and Closing Entries
2. Prepare Income Statement and Balance Sheet for the above information.