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Music-Is-Us, Inc., is a supplier of musical instruments for professional and amateur musicians. The companys accountants make adjusting entries monthly, and they make all closing entries annually. The company is growing rapidly and prides itself on having no long-term liabilities.

The company has provided the following trial balance dated December 31, 2015:

MUSIC-IS-US, INC. TRIAL BALANCE DECEMBER 31, 2015
Cash	$	48,000
Marketable securities		27,000
Accounts receivable		132,000
Allowance for doubtful accounts				$	5,300
Merchandise inventory		256,000
Office supplies		1,800
Prepaid insurance		6,820
Building and fixtures		1,801,000
Accumulated depreciation					798,000
Land		69,800
Accounts payable					64,000
Unearned customer deposits					7,100
Income taxes payable					72,000
Capital stock					920,000
Retained earnings					235,200
Unrealized holding gain on investments					5,600
Sales					1,708,600
Cost of goods sold		951,000
Bank service charges		280
Uncollectible accounts expense		8,900
Salary and wages expense		385,000
Office supplies expense		500
Insurance expense		6,100
Utilities expense		2,600
Depreciation expense		47,000
Income tax expense		72,000
	$	3,815,800		$	3,815,800

Other information pertaining to Guitar Universes trial balance is shown below:

1.

The most recent bank statement reports a balance of $50,265. Included with the bank statement was a $2,400 check from Iggy Smarts, a professional musician, charged back to Music-Is-Us as NSF. The banks monthly service charge was $35. Three checks written by Music-Is-Us to suppliers of merchandise inventory had not yet cleared the bank for payment as of the statement date. These checks included: no. 508, $4,200; no. 511, $8,900; and no. 521, $8,200. Deposits of $16,600 reached the bank too late for inclusion in the current bank statement. The company prepares a bank reconciliation at the end of each month.

2.	Music-Is-Us has a portfolio of marketable securities that originally cost $21,000. As of December 31, the market value of these securities was $29,700. All short-term investments are classified as "available for sale."

3.	During December, $5,900 of accounts receivable were written off as uncollectible. A recent aging of the company's accounts receivable helped management to conclude that an allowance for doubtful accounts of $8,500 was needed at December 31, 2015.

4.	The company uses a perpetual inventory system. A year-end physical count revealed that several guitars reported in the inventory records were missing. The cost of the missing units amounted to $1,300. This amount is not considered significant relative to the total cost of inventory on hand.

5.	At December 31, approximately $820 in office supplies remained on hand.

6.	The company pays for its insurance policies 12 months in advance. Its most recent payment was made on November 1, 2015. The cost of this policy was slightly higher than the cost of coverage for the previous 12 months.

7.	Depreciation expense related to the company's building and fixtures is $5,000 for the month ending December 31, 2015.

8.

Although Music-Is-Us carries an extensive inventory, it is not uncommon for experienced musicians to order custom guitars made to their exact specifications. Manufacturers do not allow any sales returns of custom-made guitars. The entire sales amount is collected at the time a custom order is placed, and is credited to an account entitled Unearned Customer Deposits. As of December 31, $3,800 of these deposits remained unfilled because the special-order guitars have not been received from the manufacturer. The cost of goods sold and the reduction in inventory associated with all custom orders is recorded when the custom merchandise is delivered to customers. At that time, the adjusting entry requires only a decrease to unearned customer deposits and an increase in sales.

9.

Accrued income taxes payable for the entire year ending December 31, 2015, total $81,000. No income tax payments are due until early in 2016. 11. So i need to take the information provided aboveand do the following: A. Prepare a bank reconsiliation and make the journal entries to update the accounting records of Music-Is0Us as of Dec. 31 2015 B.Prepare all necessary adjusting entries at, Dec. 31 2015 . C.On the basis of those adjustments made to the accounting records, prepare the company's adjusted trial balance at dec 31, 2015 D.Use adjusted balance to prepare an annual income statement dated dec. 31 2015 D1:Pre pare statement of retained earnings D:2 Prepare a balnce sheet ysing the adjusted trial balnce above E:Using the financial statements prepared in part D above, determine approx. how many days an account receiveable remains outstanding before it is collected. You may assume that the companys average accounts receivable balance on dec. 31 is a close appox. of its average accounts reveivable balance throughout the year F: Using the financial statements prepared in part D: determine appoximately how many days an item of merchandise remains in stock before it is sold. You may assume that the compays ending merchandise inventory balance on dec 31 is a close appoximation of its average merchandise inventory balance through the year. G:Using part D: Determine appox. how many days it takes to convert the companys inventory into cash. (use 365 days a year)