P532 Completion of a worksheet, preparation of statements, adjusting and closing entries (LG 2, 4-7) Following is the trial balance of Orange Company on December 31, 2011, the end of the fiscal year: Acct. No. 101 Cash 111 Accounts Receivable 130 Merchandise Inventory 136 Store Supplies 165 Store Equipment 166 Accumulated Depreciation-Store Equipment 201 Accounts Payable 202 Notes Payable (due 2012) 231 Unearned Rent 331 Common Stock 360 Retained Earnings 372 Dividends 401 Sales 403 Sales Discounts 501 Purchases 502 Transportation In 504 Purchases Discount 602 Sales Salaries Expense 703 Office Salaries 711 Rent Expense 721 Utilities Expense* Account Title Debits Credits 21,000 40,000 15,000 30,000 150,000 40,000 30,000 10,000 3,000 60,000 38,000 2 2,000 352,000 196,000 4,000 3,000 40,000 20,000 16,000 7,000 nse Rent Revenue Totals 803 $546000 $546 000 Classifled as general and administrative expense. 226 CHAPTER S The merchandise inmventory at December 31, 2011, is $12000. Data for adjustments follows: a. Store supplies on hand at December 31, 2011 have a valuation of $3,000. b. Depreciation of store equipment for 2011 is $12,000 c. Interest of $1,000 is accrued on notes payable. d. Salaries eamed as of December 31 but not due to be paid until January are $3.0m they are equally divided between sales salaries and office salaries. e. The last quarterly rent collection for November, December, and January was credited to Unearned Rent when collected on November 1, 2011. f. Esti mated income tax expense is $10,000. REQUIRED 1. Enter the above balances in a work sheet and complete the work sheet. Use te approach for inventory changes your instructor prefers. 2. Prepare (a) a multiple-step income statement, (b) a statement of owners' equity as 3. Journalize the adjusting and the closing entries. (c) a balance sheet. No additional shares of common stock were sold during the yet