The normal account balances appearing in the ledger of Engle

Company as of December 31, 2019, before adjustments, are listed below:

Cash $30,000 Accounts Payable 18,000

Freight Out 14,300 Office Supplies 11,500

Sales 80,000 Withdrawals 16,000

Purchases 45,000 Accumulated Depreciation 20,000

Advertising Expense 13,000 Office Building

Purchase Discounts 12,000 Sales Discounts 4,000

Merchandise Inventory 32,000 Office Building 40,000

Freight In 1,700 Capital - Bowman 77,500

OTHER INFORMATION (ADJUSTMENT DATA)

A physical inventory of the merchandise was taken on December 31, 2019 and it

was valued at $30,000. The Periodic Inventory Method is used.

The office supplies inventory at December 31, 2019 was $ 6,500.

The estimated life of the office building is 20 years and is depreciated

using the straight line method of depreciation.

PREPARE

A) A Worksheet (30 Points)

B) A Classified Income Statement. (20 Points)