(P8-5B). From the following ledger balance and additional data below, complete the following for Callahan Lumber of Hinton : Check figure: Net Income $3,480

a. Prepare the worksheet.

b. Prepare the Income statement, statement of owner's equity, and balance sheet.

c. Journalize and post adjusting and closing entries.(Be sure to put beginning balances in the ledger first.)

d. Prepare a post - closing trail balance.

e. Journalize the reversing entry for wages.

Account No.

110 cash $1140

111 Accounts receivable $1270

112 Merchandise Inventory $5600

113 Lumber Supplies 260

114 Prepaid Insurance 117

121 Lumber Equipment 2600

122 Accumulated Depreciation, Lumber Equipment 340

220 Accounts payable 1330

221 Accrued wages ------

330 J. Callahan , Capital 7562

331 J. Callahan, Withdrawals 3500

332 Income summary ------

440 Sales 23000

441 Sales return and allowances 400

550 Cost of goods sold 13715

660 Wages expense 2390

661 Advertising expense 400

662 Rent expense 840

663 Depreciation expense, lumber equipment -----

664 Lumber supplies expense -------

665 Insurance expense -------

A. Physical count of inventory, December 31 $4700

B. Lumber supplies on hand , December 31 80

C. Insurance expired 70

D, Depreciation for the year 460

E. Accrued wages on December 31 165