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The December 31, 2016, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the companys fiscal year-end.

Account Title	Debits	Credits
Cash	37,410
Accounts receivable	34,250
Prepaid rent	5,800
Inventory	53,750
Equipment	126,000
Accumulated depreciationequipment		37,800
Accounts payable		39,000
Salaries and wages payable		0
Common stock		100,000
Retained earnings		38,500
Sales revenue		523,000
Cost of goods sold	313,800
Salaries and wages expense	104,600
Rent expense	34,800
Depreciation expense	0
Utility expense	20,920
Advertising expense	6,970
Totals	738,300	738,300

The following year-end adjusting entries are required:
a.	Depreciation expense for the year on the equipment is $12,600.
b.	Accrued salaries and wages payable at year-end should be $6,680.

1. .

value: 30.00 points

Required information

Exercise 2-20 Part 1

Required:
1.	Prepare and complete a worksheet.

Hints

References

eBook & Resources

Hint #1

Check my work

2.

value: 20.00 points

Required information

Exercise 2-20 Part 2

2.1	Prepare an income statement for 2016.

2.2	Prepare a balance sheet as of December 31, 2016. (Amounts to be deducted should be indicated with a minus sign)