P 55 The following trial balance has been extracted from the records of Acme Automotive Inc. at December 31, 2017, its fiscal year-end. The company uses the perpetual inventory system.

Cash $750

Accounts receivable $12,000

Merchandize inventory $56,000

Unused supplies $0

Equipment Bank loan (due May, 2018) Cr $5000

Accounts payable $12,540

Income taxes payable $2,400

Share capital $2000

Retained earnings $600

Sales $100,000

Sales returns and allowances Dt $1,500

Sales discounts $500

Cost of goods sold $34,000

Advertizing expense $1,700

Commissions expense $4,800

Delivery expense $650

Insurance expense $450

Interest expense $600

Office supplies expense $250

Rent expense $1,950

Telephone expense $300

Utilities expense $290

Required: 1. Prepare adjusting entries, including general ledger account numbers and brief descriptions, for the following:

a. $1,000 of sales on account has not been recorded. (Cost to Acme: $700)

b. A physical count indicates that $100 of office supplies is still on hand at year-end.

c. A telephone bill for $60 owing at December 31 has not yet been recorded.

d. A physical count indicates that $53,000 of merchandize inventory is on hand at December 31, 2017.

2. Prepare a multi-step income statement and statement of changes in equity for the year ended December 31, 2017, and a classified statement of financial position at December 31.