Presented below is information related to the accounts as of November 30.

Cash................................................$ 88,000

Accounts receivable.................................12,000

Allowance for uncollectible accounts................$1,000

Supplies............................................4,000

Inventories.........................................29,000

Buildings and equipment............................. 150,000

Accumulated depreciation............................25,000

Accounts payable....................................5,000

Note payable........................................20,000

Capital Stock.......................................100,000

Retained Earnings...................................42,000

Sales...............................................272,000

Purchases........................................... 131,000

Salary Expense......................................37,000

Interest Expense....................................1,000

Other Expenses...................................... 13,000

$465,000$465,000

The following transactions occurred during December:

12/02The business acquired the clothing inventory of Dona Company for $65,000.Dona was going out of business.(Note: Paid cash for entire amount).

12/03Supplies were purchased for cash at a cost of $6,000.

12/05Clothing purchases on account, $45,000.

12/06Clothing sales for cash, $36,000; on account, $40,000.

12/08Salary expenses paid in cash, $12,000.

12/10Accounts receivable collections, $35,000.

12/11Payments on accounts payable, $28,000.

12/14Other expenses paid in cash, $5,600.

12/15Board meets and declares dividend $3,000.

12/16Purchases of clothing on account, $65,000.

12/18Supplies purchased for cash, $3,000.

12/19Write-off of customer accounts, $100.

12/21Clothing sales for cash, $50,000; on account, $72,000.

12/23Salaries paid in cash, $16,000.

12/23Accounts receivable collections, $48,000.

12/26Payments on accounts payable, $70,000.

12/28Dividend checks issued to shareholders (see 12-15 above).

12/30Other expenses paid in cash, $6000.

REQUIRED:

1.Open T-accounts and enter the November 30 information in the various T-accounts.

2.Record the December transactions in general journal form.

3.Post the journal entries in part 2 to the appropriate T-accounts.

4.Prepare the end-of-year worksheet, also adjust entries in the general journal, remember to post the AJE's.

Information for adjustments:

a.Allowance for uncollectible accounts is estimated to be 10% of accounts receivable.

b.Supplies used, $12,000.

c.Depreciation expense for the year $16,000.

d.Salaries accrued, end of December $3,000.

e.Interest accrued on notes payable, $1,000.

f.Ending Inventory is $15,000.

5.Prepare the income statement and balance sheet for the year.

6.Record and post closing entries.