Raymond Companys trial balance at December 31, 2016, is presented below.

All 2016 transactions have been recorded except for the items described below the table.

	Debit	Credit
Cash	28,000
Accounts Receivable	36,800
Notes Receivable	10,000
Interest Receivable	0
Inventory	36,200
Prepaid Insurance	4,400
Land	20,000
Buildings	160,000
Equipment	60,000
Patents	8,000
Allowance for Doubtful Accounts		300
Accumulated DepreciationBuildings		49,000
Accumulated DepreciationEquipment		24,000
Accounts Payable		28,300
Income Taxes Payable		0
Salaries and Wages Payable		0
Unearned Rent Revenue		6,000
Notes Payable (due in 2017)		11,000
Interest Payable		0
Notes Payable (due after 2017)		35,000
Share Capital Ordinary		50,000
Retained Earnings		63,600
Dividends	12,000
Sales Revenue		910,000
Interest Revenue		0
Rent Revenue		0
Gain on Disposal of Plant Assets		0
Bad Debt Expense	0
Cost of Goods Sold	630,000
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	61,800
Amortization Expense	0
Salaries and Wages Expense	110,000
TOTAL	1,177,200	1,177,200

Unrecorded transactions:

1. On May 1, 2016, Raymond purchased equipment for 13,000 plus sales taxes of 780 (all paid in cash).

2. On July 1, 2016, Raymond sold for 3,500 equipment, which originally cost 5,000. Accumulated depreciation on this equipment at January 1, 2016, was 1,800; 2016 depreciation prior to the sale of the equipment was 450.

3. On December 31, 2016, Raymond sold for 9,400 on account inventory that cost 6,600.

4. Raymond estimates that uncollectible accounts receivable at year-end are 4,000.

5. The note receivable is a one-year, 8% note dated April 1, 2016. No interest has been recorded.

6. The balance in prepaid insurance represents payment of a 4,400 6-month premium on October 1, 2016.

7. The building is being depreciated using the straight-line method over 40 years. The residual value is 20,000.

8. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The residual value is 10% of cost.

9. The equipment purchased on May 1, 2016, is being depreciated using the straight-line method over 5 years, with a residual value of 1,000.

10. The patent was acquired on January 1, 2016, and has a useful life of 10 years from that date.

11. Unpaid salaries and wages at December 31, 2016, total 2,200.

12. The unearned rent revenue of 6,000 was received on December 1, 2016, for 4 months rent.

13. Both the short-term and long-term notes payable are dated January 1, 2016, and carry a 9% interest rate. All interest is payable in the next 12 months.

14. Income tax expense was 17,000. It was unpaid at December 31.

INSTRUCTIONS:

(a) Prepare journal entries for the transactions listed above.

(b) Prepare an updated December 31, 2016, adjusted trial balance (entries 4-14 are adjustments).

(c) Prepare a 2016 income statement and a 2016 retained earnings statement.

(d) Prepare a December 31, 2016, classied statement of nancial position.