Project Data

Mowgli Corporation adjusted trial balance for fiscal year ending December 31, 2019.

	Dr.	Cr.
Cash	$21,000
Accounts Receivable	$102,000
Inventory (beginning)	$20,000
Estimated Returns Inventory	$5,000
Land	$9,000
Office equipment	$22,000
Accumulated Depreciation-equip.		$20,000
Building	$233,000
Accumulated Depreciation-Bldg.		$94,000
Patent	$16,000
Accounts Payable		$73,000
Customer Refunds Payable		$2,000
Interest Payable		$14,000
Unearned Revenue		$22,000
Notes Payable		$100,000
Capital		$80,000
Drawings	$29,000
Sales		$206,600
Purchases	$106,000
Purchases Returns and Allowances		$1,000
Purchase Discounts		$500
Freight-in	$300
Insurance Expense	$6,000
Interest Expense	$8,000
Repair Expense	$5,000
Salaries Expense	$17,600
Advertising Expense	$1,200
Depreciation Expense	$11,000
Utilities Expense	$1,000
	$613,100	$613,100

Other Information:

• Inventory on hand at December 31, 2019 is $55,000 (Hint: this is ending inventory).
• Estimated Returns Inventory increased $2,000 (Hint: Include in COGS and Closing Entry).
• Administrative expenses include: Insurance, Repair, Utilities, and Depreciation.
• Selling expenses include: Advertising and Salaries.
• $50,000 of the Notes Payable is payable next year (Hint: classified as current).

Instructions

Prepare a (1) multiple step income statement, (2) statement of owners equity, (3) classified balance sheet, and (4) closing entry.