SUMMARY INFORMATION 1. BACKGROUND: Bailey's Bagel was incorporated on January 1, 2010 with 40,000 shares of $1 par value common stock authorized. All 40,000 shares have been issued. 2. The company's accounting period ends on December 31 of each year. 3. ACCOUNTING POLICIES: The company uses the following generally accepted accounting principles in presenting financial information: INVENTORY VALUATION-First-in, first-out method on a perpetual basis. Physical counts are conducted at the end of the year to determine the quantity and value of merchandise inventory on hand. DEPRECIATION - Straight-line. a. b. 4. As of the close of business on November 30, 2017, the company had the following trial balance: Acct # 1110 Cash 1120 Accounts Receivable 1130 Merchandise Inventory 1230 Equipment 1231 Accumulated Depreciation- Equipment 2110 Accounts Payable 2210 Income Tax Payable 3010 Common Stock ($1 Par) 3020 Paid-In Capital in Excess of Par 3030 Income Summary 3040 Retained Earnings 4010 Sales Revenue 5020 Cost of Goods Sold 6010 Salaries & Wages Expense 6060 Telephone&Utility Expense 6070 Rent Expense 6120Depreciation Expense- Equipment Account Title Debit Credit $ 384,000 235,200 639,600 $ 816,000 $ 257,040 S 211,200 $ 40,000 $ 174,840 $ 424,500 $ 6,441,000 $ 2,926,200 $ 2,247.,000 $ 148,800 $ 151780 6410 Income Tax Expense Total 7,548,5807,548,580