Fodor Freight Service provides delivery of merchandise to retail grocery stores in northern Manitoba. At the beginning of 2018, the following account balances were available:

During 2018 the following transactions occurred:

a.Fodor performed deliveries for customers, all on credit, for $2,256,700. Fodor also made cash deliveries for $686,838.

b.There remains $286,172 of accounts receivable to be collected at December 31, 2018.

c.Fodor purchased advertising of $138,100 during 2018 and debited the amount to prepaid advertising.

d.Supplies of $27,200 were purchased on credit and debited to the supplies account.

e.Accounts payable at the beginning of 2018 were paid early in 2018. There remains $5,600 of accounts payable unpaid at year-end.

f.Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned and paid during 2018 in the amount of $666,142.

g.During the year, Trish Hurd, a principal shareholder, purchased an automobile costing $42,000 for her personal use.

h.One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2018.

i.Property taxes were paid on the land and buildings in the amount of $170,000

j.Dividends were declared and paid in the amount of $25,000.

The following data are available for adjusting entries:

Supplies in the amount of $13,685 remained unused at year-end.

Annual depreciation on the warehouse building is $70,000.

Annual depreciation on the warehouse equipment is $145,000.

Wages of $60,558 were unrecorded and unpaid at year-end.

Interest for six months at 6% per year on the note is unpaid and unrecorded at year-end.

Advertising of $14,874 remained unused at the end of 2018.

Income taxes of $482,549 related to 2018 are unpaid at year-end.

Required:

1.Post the 2018 beginning balances to T-accounts. Prepare journal entries for transactions athrough j and post the journal entries to T-accounts, adding any new T-accounts you need.

2.Prepare the adjustments and post the adjustments to the T-accounts, adding any new T-accounts you need.

3.Prepare a statement of earnings.

4.Prepare a statement of retained earnings.

5.Prepare a classified statement of financial position.

6.Prepare closing entries.

7.Did you include transaction g among Fodor's 2018 journal entries? why or why not?

S 92,100 Accumulated Depreciation Cash Accounts Receivable Supplies Prepaid Advertising Building (Warehouse) Accumulated Depreciation 361,500 Equipment) 24,600 Land $ 580,000 304,975 17,600 30,200 1,000,000 1,400,000 462,375 2,000 Accounts Payable 2,190,000 Wages Payable Notes Payable (due in 2022) (Warehouse) Equipment 280,000 Common Shares 795,000Retained Earnings, 12/31/2017