Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the companys general ledger on January 1, 2018 (first day of the annual fiscal year) were as follows (all account balances are in their normal debit or credit position):

Cash $ 3,700

Accounts receivable 5,900

Supplies inventory 29,300

Land 168,500

Buildings 116,500

Accumulated depreciation, buildings 37,500

Equipment 58,500

Accumulated depreciation, equipment 18,000

Accounts payable 25,200

Income tax payable 16,600

Interest payable 4,200

Wages payable (due in 2018) 15,700

Notes payable ($10,000 due June 30, 2019,

balance due June 30, 2020) 61,500

Common shares 151,500

Retained earnings, Dec. 31, 2017 52,200

The following transactions occurred during 2018:

1.The company provided mold design services , all on credit, for $ 210,300. In addition, the company manufactured molds for customers for $ 62,300 cash. Accounts receivable arising from the credit sales of $ 15,600 remain to be collected at December 31, 2018.

2.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.

3.Minor parts were purchased for $ 7,400 cash and debited to the supplies inventory account.

4.Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned by employees and paid during 2018 in the amount of $ 112,000.

5.Income tax payable at the beginning of 2018 was paid early in 2018.

6.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.

7.One years interest at 9% was paid on the notes payable at July 1, 2018.

8. During 2018, Don Tallint, the principal shareholder, purchased a new car for his wife

Debbie. The new car cost $ 45,000 and was paid for with personal funds in cash.

9.Property taxes were paid on the land and buildings in the amount of $ 17,000 cash.

10.Dividends were declared and paid in the amount of $ 7,200.

Information available for year end journal entries:

Supplies inventory was counted and it was determined the supplies inventory was still on hand at yearend of $ 31,900.

Annual depreciation on the buildings is $ 6,000.

Annual deprecation on the equipment is $ 5,500

Wages of $4,000 had been earned by employees but were unpaid and unrecorded at yearend.

Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at yearend.

Income taxes of $ 16,500 were unpaid and unrecorded at year end.

Required:

1. Prepare journal entries for the transactions 1 to 10 above as required. Record your journal entries on the electronic worksheet provided. Add any new accounts to the worksheet that you think you need.

2. Prepare an income statement in worksheet format for the year ended December 31, 2018.

3.Prepare a statement of financial position in worksheet format as at December 31, 2018 .

4.Prepare closing journal entries for the year ended December 31, 2018 to close out temporary accounts.