Question 2:

Shown below is the trial balance prepared from the ledger of Wilson Marine Supply at December 31, 19__. The accounts are maintained on a calendar-year basis and are adjusted and closed annually.

WILSON MARINE SUPPLY

Trial Balance

December 31, 19__

Cash	Rs. 16,300
Accounts receivables	49,200
Inventory January 1	62,000
Unexpired insurance	1,800
Office supplies	800
Land	17,000
Buildings	60,000
Accumulated depreciation: buildings		Rs. 2,400
Equipment	16,000
Accumulated depreciation: equipment		4,800
Accounts payable		47,900
Wilson, capital		99,500
Wilson, drawing	18,000
Sales		326,000
Sales returns and allowance	4,100
Sales discount	1,100
Purchases	192,000
Purchases returns and allowances		2,000
Purchase discounts		1,600
Transportation-in	4,800
Salaries and wages expense	40,000
Property taxes expense	1,100

Rs. 484,200

Rs. 484,200

Other data:

a. Examination of policies showed Rs. 600 unexpired insurance on December 31. b. Supplies on hand at December 31 were estimated to amount to Rs. 300. c. The buildings are being depreciated over a 25 year useful life. The equipment is being depreciated over a 10 year useful life.

d. Accrued salaries payable as of December 31 were Rs. 5000.

e. Inventory of merchandise on December 31 was Rs. 44,600.

f. Accrued cpnsultation income Rs. 15000

Required:

1. Prepare Income Statement.

2. Prepare Statement of Owners Equity.

3. Prepare Balance Sheet.

4. Prepare Closing Entries.

5. Prepare Post Closing Trial Balance.