Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2021. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the normal balance for that account. (Hint: The normal balance is the same as the debit or credit side that increases the account.)

Accounts payable$13,400

Accounts receivable 3,200

Accumulated depreciation: office equipment 12,500

Additional paid-in capital (common stock) 7,900 Bonds payable (due December 31, 2024) 22,800 Cash 14,700 Common stock (2,500 shares, $10 par value) 25,000

Cost of goods sold 102,980

Deferred income taxes 6,100

Depreciation expense: office equipment 2,450 Dividends declared 5,000

Income tax expense 8,090

Insurance expense 840 Land 39,700

Merchandise inventory 20,700

Notes payable (due December 31, 2022) 2,600

Office equipment 42,200

Office supplies 890 Office supplies expense 470 Preferred stock (270 shares, $20 par value) 5,400 Premium on bonds payable 1,850

Prepaid rent 1,200

Rent expense 6,000

Retained earnings (January 2021) 22,000

Salaries expense 87,695

Sales 226,800

Sales returns and allowances 2,200

Sales taxes payable 3,900

Treasury stock (700 common shares at cost) 7,875 Utilities expense 4,060