Balance sheet as of December 31

 

ASSETS			LIABILITIES
Cash	$ 37,000		Accounts Payable	$ 40,000
Marketable Securities	10,000		Wages Payable	10,800
Accounts Receivable	63,000		Taxes Payable	7,200
Uncollectible Accounts	-2,000		Short-Term Note Payable	30,000
Inventory	74,000		Interest Payable	2000
Supplies	4,000		Unearned Revenue	20,000
Prepaid Insurance	7,500		Unearned Consulting Rev.	5,000
Total Current Assets	$193,500		Total Current Liabilities	$ 115,000
Land	$111,500		Long-Term Notes  Payable	$ 50,000
Equipment	217,000		Bonds Payable	100,000
Accumulated Depreciation	-97,000		Mortgage Payable	350,000
Building	590,000		Total Long-Term  Liabilities	$500,000
Accumulated Depreciation	-110,000
Intangible Assets	60,000		STOCKHOLDER EQUITY
Total Long-Term Assets	$771,150		Capital Stock	$100,000
			Paid in Capital	140,000
			Retained Earnings	110,000
			Total Stockholders Equity	$350,000
Total Assets	$965,000		Total Liabilities & Equity	$965,000

 

Journal entries
No.	Account Titles and Explanation	Debit	Credit
1	Cash	$40,000
	Capital Stock		$40,000
2	Cash	$60,000
	Short-Term Note Payable		$60,000
3	Prepaid Rent	$30,000
	Cash		$30,000
4	Retained Earnings	$10,500
	Dividends Payable		$10,500
5	Wages Payable	$10,800
	Taxes Payable	$7,200
	Cash		$18,000
6	Accounts Payable	$30,000
	Discount Received		$600
	Cash		$29,400
7	Cash	$38,000
	Sales Revenue		$38,000
7	Cost Of Goods Sold	$16,000
	Inventory		$16,000
8	Cash	$10,000
	Consulting Service Revenue		$10,000
9	Supplies	$4,500
	Cash		$4,500
10	Notes Receivable	$25,000
	Accounts Receivable		$25,000
11	Accounts Payable	$10,000
	Cash		$10,000
12	Inventory	$60,000
	Accounts Payable		$60,000
13	Inventory	$1,800
	Cash		$1,800
14	Cash	$28,000
	Sales Revenue		$28,000
14	Cost Of Goods Sold	$13,000
	Inventory		$13,000
15	Accounts Receivable	$62,000
	Sales Revenue		$62,000
15	Cost Of Goods Sold	$29,000
	Inventory		$29,000
16	Unearned Revenue	$4,000
	Rental Revenue		$4,000
17	Cash	$49,000
	Discount Allowed	$1,000
	Accounts Receivable		$50,000
18	Salary Expenses	$12,000
	Tax Expenses	$50,000
	Cash		$62,000
19	Repairs Expense	$6,000
	Cash		$6,000
20	Advertising Expense	$2,500
	Accounts Payable		$2,500
21	Mortgage Payable	$1,437
	Interest Expense	$2,063
	Cash		$3,500
22	Unearned Consulting Revenue	$5,000
	Accounts Receivable	$10,000
	Consulting Service Revenue		$15,000
23	Carriage Outwards	$1,200
	Cash		$1,200
24	Cash	$150,000
	Capital Stock		$50,000
	Paid In Capital		$100,000
25	Petty Cash	$800
	Cash		$800
26	Treasury Stock	$20,000
	Cash		$20,000
27	Accounts Payable	$60,000
	Discount Received		$1,200
	Cash		$58,800
28	Dividends Payable	10500
	Cash		$10,500
29	Cash	$21,000
	Sales Revenue		$21,000
29	Cost Of Goods Sold	$9,500
	Inventory		$9,500
30	Cash	$20,000
	Consulting Service Revenue		$20,000
31	Inventory	$31,000
	Accounts Payable		$31,000
32	Inventory	$900
	Cash		$900
33	Accounts Payable	$2,500
	Advertising Expense	$4,000
	Cash		$6,500
34	Cash	$32,000
	Sales Revenue		$32,000
34	Cost Of Goods Sold	$15,000
	Inventory		$15,000
35	Accounts Receivable	$22,000
	Consulting Service Revenue		$22,000
36	Mortgage Payable	1,437
	Interest Expense	$2,063
	Cash		$3,500
37	Cash	$68,600
	Discount Allowed	$1,400
	Accounts Receivable		$70,000
38	Salary Expenses	$18,000
	Tax Expenses	$6,000
	Cash		$24,000
39	Property Tax Expense	$4,100
	Cash		$4,100
40	Accounts Receivable	$75,000
	Sales Revenue		$75,000
40	Cost Of Goods Sold	$33,800
	Inventory		$33,800
41	Sales Return And Allowances	$1,700
	Accounts Receivable		$1,700
42	Short-Term Note Payable	$30,000
	Interest Expense	$2,400
	Cash		$32,400
43	Petty Cash	$700
	Cash		$700
44	Supplies	$3,900
	Accounts Payable		$3,900
45	Cash	$23,000
	Sales Revenue		$23,000
45	Cost Of Goods Sold	$11,600
	Inventory		$11,600
46	Cash	$17,000
	Consulting Service Revenue		$17,000
47	Cash	$9,000
	Treasury Stock		$6,000
	Paid In Capital		$3,000
48	Cash	$25,247
	Notes Receivable		$25,000
	Interest Revenue		$247
49	Inventory	$51,000
	Accounts Payable		$51,000
50	Accounts Payable	$31,000
	Cash		$31,000
51	Entertainment Expense	$250
	Travel Expense	$265
	Miscellaneous Expense	$100
	Postage Expense	$240
	Supplies Expense	$190
	Petty Cash		$1,045
51	Petty Cash	$345
	Cash		$345
52	Cash	$24,000
	Sales Revenue		$24,000
52	Cost Of Goods Sold	$11,500
	Inventory		$11,500
53	Unearned Revenue	$16,000
	Rental Revenue		$16,000
54	Accounts Receivable	$78,000
	Sales Revenue		$78,000
54	Cost Of Goods Sold	$37,000
	Inventory		$37,000
55	Legal Expenses	$1,500
	Cash		$1,500
56	Cash	$73,500
	Discount Allowed	$1,500
	Accounts Receivable		$75,000
57	Accounts Receivable	$27,000
	Consulting Service Revenue		$27,000
58	Accounts Payable	$4,000
	Purchase Return And Allowances		$4,000
59	Building	$351,300
	Cash		$75,000
	Mortgage Payable		$276,300
60	Utilities Expense	$7,500
	Cash		$7,500
61	Short-Term Note Payable	$60,000
	Interest Expense	$592
	Cash		$60,592
62	Cash	$15,000
	Unearned Revenue		$15,000
63	Sales Return And Allowances	$5,000
	Accounts Receivable		$5,000
63	Inventory	$2,200
	Cost Of Goods Sold		$2,200
64	Mileage Expense Account	$2,500
	Cash		$2,500
65	Depreciation Expense-Equipment	$500
	Accumulated Depreciation-Equipment		$500
65	Cash	$16,000
	Accumulated Depreciation-Equipment	$6,500
	Equipment		$20,000
	Gain On Sale Of Equipment		$2,500
66	Depreciation Expense-Equipment	500
	Accumulated Depreciation-Equipment		$500
66	Accumulated Depreciation-Equipment	$18,500
	Loss On Disposal Of Equipment	$2,800
	Equipment		$20,000
	Cash		$1,300
67	Mortgage Payable	$1,437
	Interest Expense	$2,063
	Cash		$3,500

 

Adjusting entries				Calculations
No.	Account Titles and Explanation	Debit	Credit
A1	Depreciation Expense-Equipment	$9,500		(3500*3)-500-500
	Accumulated Depreciation-Equipment		$9,500
A2	Depreciation Expense-Building	$3,438		550000/40*3/12
	Accumulated Depreciation-Building		$3,438
A3	Amortiztion Expense	$500
	Intangible Assets		$500
A4	Bad Debts Expense	$3,810		381000*1%
	Allowance for Uncollectible Accounts		$3,810
A5	Salaries Expense	$15,500
	Salaries Payable		$15,500
A6	Taxes Expense	$8,900
	Taxes Payable		$8,900
A7	Supplies Expense	$7,590		4000+4500+3900+190-5000
	Supplies		$7,590
A8	Rent Expense	$7,500		30000*3/12
	Prepaid Rent		$7,500
A9	Accounts Receivable	$14,000
	Consulting Service Revenue		$14,000
A10	Insurance Expense	$750		9000/3*3/12
	Prepaid Insurance		$750
A11	Interest Receivable	$18		1000*7%*3/12
	Interest Revenue		$18
A12	Interest Expense	$625		50000*5%*3/12
	Interest Payable		$625
A13	Interest Expense	$1,250		100000*5%*3/12
	Interest Payable		$1,250

 

Develop a trial balance using the information provided.