The Orange Engine Tires, owned by O. Black, sells tires. The shop has an April 30, 2020fiscal

year end, uses a perpetual inventory system. On April 1, 2020, the company's trial balance

reported the following:

Cash $21,385

Merchandise inventory 64,125

Supplies 3,750

Sales Returns and Allowances 42,800

Sales discounts 13,800

Land 180,000

Warehouse 70,800

Accumulated depreciationwarehouse 13,275

Accounts payable 65450

Interest Payable 6,070

Unearned revenue 4,680

Notes payable- Due Dec. 2022 42,000

Mortgage Payable- Due 2025 200,000

O. Black, capital $58,400

O. Black, drawings 52,800

Sales 474,080

Rent revenue 1,200

Cost of goods sold 301,010

Advertising expense 2,270

Salaries expense 68,200

Rent expense 18,150

Insurance expense 4,140

Interest expense 1,925

Accounts Receivable 20,000

Adjustment and additional data:

1. A count of supplies on April 30 shows $2000 on hand.

2. The Warehouse has an estimated 12-year useful life.

3. Of the mortgage payable, $60,000 must be paid on September 30 each year

4. An analysis of the Unearned Revenue account shows that 55% has been earned by April 30.

5. On April 30, services of $25,000 were provided but not recorded.

6. The mortgage payable has a 5.5% interest rate. Interest is paid on the first day of each month

for the previous month's interest.

7. Employees earned $375 per day. On April 30, 5 employees were unpaid for 4 days.

8. A 12-month insurance policy was purchase February 1, 2020 for $1,800

9. The telephone bill for the month was for $550, and at the end of the month it was not recorded

or paid..