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The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's year-end reporting date. Credits Debits

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The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's year-end reporting date. Credits Debits 20,000 35,000 5,000 50,000 100,000 30,000 25,000 Account Title Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation Accounts payable Salaries payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Utilities expense Advertising expense Totals 100, eee 29,000 323, eee 180,000 71,000 30, eee 12,000 4,eee 5e7,000 507,000 The following year-end adjusting entries are required: a. Depreciation expense for the year on the equipment is $10,000. b. Salaries at year-end should be accrued in the amount of $4,000. Required: 1. Prepare and complete a worksheet. WOLKSTEIN DRUG COMPANY Worksheet December 31, 2021 Adjusting Entries Adjusted Trial Balance Dr. Cr. Dr. Cr. Account Title Income Statement Dr. Cr. Balance Sheet Dr. C. Unadjusted Trial Balance Dr. Ct. 20,000 35,000 5.000 50.000 100,000 30,000 25.000 0 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation Accounts payable Salaries payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Unides expense Advertising expense 100,000 29,000 323,000 180,000 71,000 30,000 0 12,000 4,000 Net income Totals 507.000 507.000 Income Statement Balance Sheet Prepare an income statement for 2021. WOLKSTEIN DRUG COMPANY Income Statement For the Year Ended December 31, 2021 Gross profit Operating expenses: Total operating expenses Net income WOLKSTEIN DRUG COMPANY Balance sheet At December 31, 2021 Assets Current assets: Total current assets Property and equipment: Total assets Liabilities and Shareholders' Equity aces Current liabilities: Total current liabilities Shareholders' equity: Total shareholders' equity Total liabilities and shareholders' equity Balance Shen

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