SUMMARY INFORMATION Page 2 BACKGROUND: Linda's Linen was incorporated on January 1,2010 with 40,000 shares ot $1 par value common stock authorized. All 40,000 shares have been issued. The company's accounting period ends on December 31 of each year 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 quamity arvd value of merchandise inventory on hand. a. As of balance: b. DEPRECIATION -Straight-line. the close of business on December 31, 2017, the company had the following trial Linda's Linen Post-Closing Trial Balance As of December 31, 2017 Acct # Account Title Debit $ 100,350 $ 89,400 s 124.000 $ 250,000 Credit 1110 Cash 1120 Accounts Receivable 1130 Merchandise Inventory 1230 Equipment 1231 Accumulated Depreciation Equipment 2110 Accounts Payable 2210 Income Tax Payable 3010 Common Stock (51 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 5060 Telephone & Utility Expense 6070 Rent Expense 6120 Depreciation Expense- Equipment 6410 Income Tax Expense 90,000 $ 50,000 S 40,000 $ 260,000 $ 123,750 Total $ 563,750$ 563,750