There are two homework problems this week. The first is below and the second one is on the second tab at the bottom left of the screen Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries. Baltimore Glass Company Trial Balance December 31, 2015 Acct. No. Account Title Debit Credit 101 Cash 88,450 110 Accounts Receivable 195,613 120 Merchandise Inventory 256,250 125 Supplies on Hand 3,252 130 Prepaid Insurance 3,500 131 Prepaid Rent 7,500 150 Equipment 175,285 160 Accumulated Depreciation 24,260 202 Accounts Payable 72,555 210 Wages Payable - 301 Capital Stock 220,000 302 Retained Earnings, January 1 211,144 401 Sales 998,250 405 Sales Returns and Allowances 5,145 410 Interest Income 1,500 500 Purchases 560,880 501 Purchases Discounts 4,080 502 Purchases Returns and Allowances 1,200 505 Freight In 4,580 520 Advertising Expense 1,000 530 Sales Salaries Expense 88,600 532 Supplies Expense - 540 Office Salaries Expense 124,500 550 Utilities Expense 8,594 555 Insurance Expense - 560 Professional Fees Expense 3,000 570 Depreciation Expense - 580 Interest Expense 6,840 1,532,989 1,532,989 Adjusting items: 1. The remaining prepaid insurance at year end is $3,000 2. A physical inventory shows supplies on hand of $2,000 at year end 3. The prepaid rent of $7,500 covers January 2016 rent 4. Depreciation on equipment is $12,000 for the year 5. At year end sales salaries of $3,000 were earned but unpaid 6. At year end office salaries of $4,000 were earned but unpaid 7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet. 8. A physical count of inventory shows a value of $219,100. The periodic inventory method is used. Do the following requirements below. Create proper headings for each statement. 1. Record adjusting journal entries from information above. It is possible that an item may not require an entry 2. Prepare an adjusted trial balance including the adjusting entries made 3. Prepare a classified income statement. Supplies is a sales expense. January 1, 2015 merchandise inventory was 256,250. 4. Prepare a statement of retained earnings 5. Prepare a classified balance sheet 6. Prepare closing journal entries Account # Account Title debit credit ` Baltimore Glass Company Trial Balance 42369 Acct. No. Account Title Debit Credit 101 Cash 110 Accounts Receivable 120 Merchandise Inventory 125 Supplies on Hand 130 Prepaid Insurance 131 Prepaid Rent 150 Equipment 160 Accumulated Depreciation 202 Accounts Payable 210 Wages Payable 301 Capital Stock 302 Retained Earnings, January 1 401 Sales 405 Sales Returns and Allowances 410 Interest Income 500 Purchases 501 Purchases Discounts 502 Purchases Returns and Allowances 505 Freight In 520 Advertising Expense 530 Sales Salaries Expense 532 Supplies Expense 540 Office Salaries Expense 550 Utilities Expense 555 Insurance Expense 560 Professional Fees Expense 570 Depreciation Expense 580 Interest Expense 0 0 Baltimore Glass Company Income Statement For the Year Ended 12/31/2015 Note on utilities, insurance, professional fees - I did not indicate where these expenses belonged so you may have put some in selling expense also. Note on depreciation - I did note indicate where this went so some of it could have gone to selling expense or even to cost of goods sold You would have needed more information to determine that Note on interest - you could have combined as I did or shown them as separate items. Baltimore Glass Company Statement of Retained Earnings For the Year Ended 12/31/2015 You could have skipped the line for dividends and had just three lines on the statement since it was zero. Baltimore Glass Company Balance Sheet As of December 31, 2015 Closing Entries zero out income statement accounts for new year