Salem trading company unadjusted trial balance Dec 31, 2016

	Debit	Credit
Cash	$25,500
Accounts Receivable	40,000
Allowance for Doubtful Accounts		700
Inventory, Dec 31	80,000
Prepaid Insurance	5,100
Prepaid Supplies	5,000
Equipment	84,000
Accumulated Depretiation - Equipment		35,000
Notes Payable		35,000
Common Stock		80,600
Retained Earnings		10,000
Sales Revenue		608,000
Cost Of Good Sold	408,000
Salaries and Wages Expense (sales)	50,000
Advertising Expense	6,700
Salaries and Wages Expense (administrative)	65,000

769,300

769,300

1. Bad debt expense is estimated to be $1680

2. Equipment is depreciated based on a 7-year life (no salvage value)

3. nshurance expired during the year $2975

4. Interest accrued on notes payable $2360

5. Sales salaries and wages earned but not paid $3000

6. Office supplies on hand $2000

a) Construct T-accounts and enter the balances shown

b) Prepare adjusting journal entries for the following and post to the T-accounts. (Omit Explanations)

Open Additional T-accounts as necessary. ( The bookes are closed yearly on December 31.)

c) Prepare an adjusted trial balance

d) Prepare an income statement for 2016 and a balance sheet as of December 31, 2016

e) Prepare and post closing entries

f) Prepare a post-closing trial balance