1. Estimated uncollectible accounts receivable at July 31 are $3,930.
2. The note receivable bears interest of 6% and was issued on December 31, 2013. Interest is payable the first of each month.
3. A physical count of inventory determined that $39,290 of inventory was actually on hand.
4. Prepaid expenses of $5,590 expired in the year. (use the account Operating Expenses.)
5. Depreciation is calculated on the long-lived assets using the following methods and useful lives:

   	Building: straight-line, 25 years, $10,500 residual value
   	Equipment: double diminishing-balance, five years, $2,500 residual value
   	Patent: straight-line, five years, no residual value

6. The 4% note payable was issued on August 1, 2004. Interest is paid monthly at the beginning of each month for the previous months interest. Of the note principal, $1,720 is currently due.
7. Estimated warranty costs for July are $2,065. (Use the account Operating Expenses.)

) Prepare the adjusting journal entries required at July 31.

b) Prepare an adjusted trial balance at July 31.

c) Prepare a multiple-step income statement for the year at July 31.

d) Prepare a statement of owners equity for the year at July 31.

e) Prepare a balance sheet for the year at July 31. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

LEBRUN COMPANY Trial Balance July 31, 2014 Debit Credit Cash $16,750 Accounts receivable 39,300 Allowance for doubtful accounts $2,000 Note receivable (due December 31, 2014) 10,000 Merchandise inventory 45,900 Prepaid expenses 16,000 Land 50,000 Building 155,000 Accumulated depreciation-building 11,160 Equipment 25,000 Accumulated depreciation-equipment 12,200 Patent 74,200 Accumulated amortization-patent 14,840 Accounts payable 77,900 Warranty liability 6,000 Notes payable (due August 1, 2029) 124,200 S. LeBrun, capital 124,700 S. LeBrun, drawings 54,000 Sales 750,800 Cost of goods sold 450,000 Operating expenses 181,220 Interest revenue 400 Interest expense 6,830 Totals $1,124,200 $1,124,200