The following items should be considered in adjusting the accounts for financial statement preparation:

1.

Franklin Products acquired a 8.4% bank loan for $65,550 on August 1, 2017, due in 1 year.

2.

Prepaid insurance is the cost of a 18-month insurance policy, effective February 1.

3.

Franklin Products rents warehouse storage for its seasonal heavy equipment. On November 1, 2017, Franklin Products paid $4,140 for a 6-month lease.

4.

The physical inventory count of Merchandise Inventory indicated an amount $64,686.

5.

Supplies on hand at December 31, 2017 total $3,918.

6.

Equipment is depreciated on a straight-line basis; residual value is estimated to be $7,500 with an estimated service life of 7 years. The assets were held the entire year.

7.

On October 1, Franklin Products issued Evergreen Industries a 6-month note receivable at a 6.4% annual interest rate.

8.

The aging schedule of accounts receivable indicates total estimated bad debt will be $8,166.

Salaries & Wages of $1,498 are accrued and unpaid at December 31, 2017.

End of Period Worksheet
For the Year Ended December 31, 2017
	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance		Income Statement		Balance Sheet
	DR	CR	DR	CR	DR	CR	DR	CR	DR	CR
Cash	23,414
Accounts Receivable	92,552
Allowance for Doubtful Accounts		451
Interest Receivable
Note Receivable	5,290
Merchandise Inventory	66,516
Prepaid Insurance	2,484
Prepaid Rent	4,140
Supplies	10,488
Equipment	94,392
Accumulated Depreciation - Equipment		10,212
Accounts Payable		9,669
Salaries & Wages Payable
Interest Payable
Utilities Payable
Note Payable (final payment due 2020)		65,550
Common Stock		27,600
Retained Earnings		78,200
Dividends	22,540
Sales		989,690
Sales Returns and Allowances	5,520
Sales Discounts	11,868
Cost of Goods Sold	681,214
Salaries & Wages Expense	149,868
Depreciation Expense - Equipment
Bad Debt Expense
Insurance Expense
Rent Expense
Supplies Expense
Utilities Expense	11,086
Interest Revenue
Interest Expense
	1,181,372	1,181,372
Net Income COMPLETE THE WORKSHEET PREPARE ADJUSTING JOURNAL ENTRIES PREPARE INCOME STATEMENT PREPARE STATEMENT OF S.E CLOSING ENTRIES PREPARE A BALANCE SHEET