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On January 1, 2021, Displays Incorporated had the following account balances: Accounts Debit Credit Cash $ 28,000 Accounts receivable 25,000 Supplies 31,000 Inventory 64,000 Land

On January 1, 2021, Displays Incorporated had the following account balances:

Accounts Debit Credit
Cash $ 28,000
Accounts receivable 25,000
Supplies 31,000
Inventory 64,000
Land 233,000
Accounts payable $ 30,000
Notes payable (6%, due next year) 26,000
Common stock 192,000
Retained earnings 133,000
Totals $ 381,000 $ 381,000

From January 1 to December 31, the following summary transactions occurred:

Purchased inventory on account for $336,000.

Sold inventory on account for $600,000. The cost of the inventory sold was $316,000.

Received $564,000 from customers on accounts receivable.

Paid freight on inventory received, $30,000.

Paid $326,000 to inventory suppliers on accounts payable of $330,000. The difference reflects purchase discounts of $4,000.

Paid rent for the current year, $48,000. The payment was recorded to Rent Expense.

Paid salaries for the current year, $156,000. The payment was recorded to Salaries Expense.

Year-end adjusting entries:

Supplies on hand at the end of the year are $8,000.

Accrued interest expense on notes payable for the year.

Accrued income taxes at the end of December are $24,000

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