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Special Services began operations on 1/1/2018. Their annual reporting period ends 12/31. The beginning trial balance on 1/1/2020 follows: Account title Debit Credit Cash 178,000

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Special Services began operations on 1/1/2018. Their annual reporting period ends 12/31. The beginning trial balance on 1/1/2020 follows: Account title Debit Credit Cash 178,000 Accounts receivable 4,000 Allowance for uncollectable accounts 2,000 Prepaid insurance 2000 Supplies 13,000 Inventory 7,000 Equipment 77,000 Accumulated Depreciation 8,000 Land Accounts payable 16000 Wages payable 3000 Interest payable 1000 Income taxes payable Long-term notes payable Common stock (8,000 shares, $0.50 par value) 4,000 Additional paid-in capital 68,000 Retained earnings 179,000 Service revenue Sales revenue Gain LOSS Cost of goods sold Wages expense Supplies expense Bad debt expense Interest expense Depreciation expense Income tax expense Misc. operating expenses Totals 281,000 281,000Transactions during 2021: a. 530,000 cash was borrowed on a five-year 10%% note payable, dated 5/1/2021. b. 513,000 cash was paid for land. c. Earned $118,000 in service revenues for 2020. $53,000 on account and the remainder in cash. d. Purchased Inventory with $15,000 cash. e. Sold $12,000 of inventory for $17,000 cash. f. Issued 4,000 additional shares of $0.50 par value common stock for cash at $1 per share on 1/2/2021. g. Incurred 5114,000 in miscellaneous operating expenses for 2021, $20,000 on credit and the rest paid in cash. h. Collected $34,000 owned on account. i. Purchased $17,000 supplies on account. j. Paid $26,000 accounts payable. k. A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000. The accumulated depreciation on the equipment amounted to $1,000 I. Bid on a $2,000 one-year service contract. If accepted, work is to begin on 2/1/2022. m. $103,000 was paid for employee wages. This included wages owed from 2021. n. Declared and paid $2,000 in cash dividends. Adjusting entries: o. $5,000 in supplies remained on 12/31/2021. p. 58,000 depreciation on equipment. q. Interest accrued on notes payable in step a. r. 515,000 in wages were earned but will not be paid until 1/3/2022. $2,000 in income taxes for 2021 will be paid in 2022. t . 54,000 was written off during the year. u. 54,000 of A/R is estimated to be uncollectable

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