Lake City Food Mart

Adjusted Trial Balance

December 31, 2020

Balance

Account Title Debit Credit

Cash $5,600

Accounts Receivable 37,100

Merchandise Inventory 25,800

Office Supplies 1,300

Prepaid Rent 1,000

Furniture 26,500

Accumulated Depreciation $23,800

Accounts Payable 6,300

Salaries Payable 2,000

Interest Payable 600

Unearned Revenue 2,400

Notes Payable, long term 35,000

Common Stock 20,000

Retained Earnings 2,200

Dividends 48,000

Sales Revenue 226,000

Interest Revenue 2,000

Cost of Goods Sold 81,000

Salaries Expense 72,700

Rent Expense 7,700

Utilities Expense 5,800

Depreciation Expense-Furniture 2,700

Supplies Expense 2,200

Interest Expense 2,900

Total $320,300 $320,300

Lake City Food Mart is a company that sells merchandise and uses a perpetual inventory system. You are to build a multi-step income statement, a statement of retained earnings, and a balance sheet.

Make sure you know the formulas to prepare these statements. The statements must be in good form, have all the correct headings and numbers. Your balance sheet must balance.