Instructions and Scoring Rubric: \begin{tabular}{|l|l|} \hline Assessment Items & Requirements/Expectations \\ \hline PrepareaworksheetshowingthenetincomeandbalancesheettotalsfortheyearendingDecember31,2019. & UsingExcelasillustratedinclass.Followproperformat(seetextbook) \\ \hline PreparethenecessaryclosingentriestoclosethenominalaccountsfortheyearendingDecember31,2019. & UsingproperGeneralJournalformatandrules(seetext) \\ \hline \end{tabular} Account Balances taken from the ledger of ABCO Normal balance means assets have a debit Distributing CO. on December 31, 2019 follow: All balance, contra assets have a credit balance,, accounts have a normal balance. revenues have a credit balance, contra revenues \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ General Ledger Account Balances (Unadjusted) 12/31/19 } \\ \hline Cash & 35,000 \\ \hline Accounts Receivable & 95,000 \\ \hline Allowance for Doubtful Accounts & 1,800 \\ \hline Inventory, 12/31/2018 & 84,000 \\ \hline Long-Term Investments & 27,500 \\ \hline Land & 53,400 \\ \hline Buildings & 112,500 \\ \hline Accumulated Depreciation-Buildings & 26,780 \\ \hline Accounts Payable & 47,300 \\ \hline Mortgage Payable & 99,500 \\ \hline Capital Stock, \$5 par & 175,000 \\ \hline Retained Earnings, 12/31/2018 & 18,840 \\ \hline Dividends & 9,670 \\ \hline Sales & 359,000 \\ \hline Sales Returns & 12,890 \\ \hline Sales Discounts & 7,540 \\ \hline Cost of Goods Sold & 158,520 \\ \hline Selling Expenses & 62,350 \\ \hline Office Expenses & 38,900 \\ \hline Insurance Expense & 14,000 \\ \hline Supplies Expense & 4,800 \\ \hline Taxes- Real estate \& Payroll & 9,500 \\ \hline Interest Revenue & 550 \\ \hline Interest Expense & 3,200 \\ \hline \end{tabular} Information relating to adjustments on December 31, 2019, follows: \begin{tabular}{|c|c|} \hline a)Theinventoryonhandis$92,000.InventoryisadjustedthroughCostofGoodsSold & \\ \hline b)AllowanceforDoubtfulaccountsistobeincreasedby$2.000. & \\ \hline c)Buildingshaveasalvagevalueof$7,500.Theyaredepreciatedattherateof10%peryear. & \\ \hline Accrued selling expenses payable are $9,000. & Setupaseparateliabilityaccount-sellingexpensespayable \\ \hline There are supplies of $1,250 on hand at year- & \\ \hline Prepaid insurance at year-end should be $4,000. & \\ \hline g)Totalinterestrevenueearnedin2019shouldbe$1,400. & \\ \hline h)Accruedrealestateandpayrolltaxespayableare$2,340. & Set up a separate liability account \\ \hline i) Accrued interest payable on the mortgage is $1,78 & \\ \hline j)Incometaxexpense/liability($10,899)isestimatedtobe30%ofincomebeforetax.(Hintthisshouldallowyoutodevelopacheckfigurefornetincome(aftertax) & Hint - Net Income before tax =10,899/.30 \\ \hline \end{tabular}