EXERCISES The accounts and their balances in the ledger of Glycol Co. on December 31, 2006, are as follows: Cash Accounts Receivable $ 11,165 86,100 Sales $847,500 Sales Returns and Allowances 15,500 Merchandise Inventory 235,000 Sales Discounts 6,000 Prepaid Insurance 10,600 Cost of Merchandise Sold 501,200 Store Supplies 3,750 Sales Salaries Expense 86,400 Office Supplies 1,700 Advertising Expense 29,450 Store Equipment 225,000 Depreciation Expense- Accumulated Depreciation- Store Equipment Store Equipment 40,300 Store Supplies Expense Office Equipment 72,000 Miscellaneous Selling Expense Accumulated Depreciation- Office Salaries Expense Office Equipment 17,200 Rent Expense 1,885 60,000 30,000 Accounts Payable 56,700 Insurance Expense Salaries Payable Depreciation Expense- Unearned Rent 1,200 Note Payable Office Supplies Expense (final payment due 2016) 185,000 Office Equipment Miscellaneous Administrative Doug Easterly, Capital 282,100 Expense Doug Easterly, Drawing 40,000 Rent Revenue Income Summary Interest Expense 1,650 12,600 The data needed for year-end adjustments on December 31 are as follows: Physical merchandise inventory on December 31. Insurance expired during the year Supplies on hand on December 31: Store supplies... Office supplies Depreciation for the year: Store equipment. Office equipment Salaries payable on December 31: Sales salaries.. Office salaries Unearned rent on December 31 $228,600 5,000 1,200 900 8,500 4,500 $1,450 750 2,200 400 Instructions 1. Prepare a work sheet for the fiscal year ended December 31, 2006. List all ac- counts in the order given. 2. Prepare a multiple-step income statement. 3. Prepare a statement of owner's equity. 4. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $25,000. 5. Journalize the adjusting entries. 6. Journalize the closing entries.