Tri$-$Area Inc.

Unadjusted Trial Balance

For Years $2024$ & $2023$

$12/31/202412/31/2023$

Cash $4,7002,500$

Accounts receivable $29,40020,600$

Receivable from factor

Allowance for doubtful accounts $100600$

Inventory $40,00021,660$

Prepaid rent $1,5003,000$

Land $5,0005,000$

Building $35,00020,000$

Less accumulated depreciation$-$ bldg $9,0009,000$

Equipment $84,50075,000$

Less: accumulated depreciation$-$equip $41,50045,000$

Accounts payable $7,5006,500$

Interest payable $2,8002,000$

Unearned revenue $1,8001,600$

Recourse liability

Income tax payable $4,7008,000$

Dividends Payable $9001,500$

Notes payable $12,0005,000$

Common stock $43,66043,660$

Retained earnngs $24,90024,900$

Dividends declared $4,800$

Sales $169,440$

Service revenue $33,210$

Cost of goods sold $85,560$

Selling $24,260$

Bad debt expense

Depreciation expense

General and administrative $34,600$

Interest expense $1,200$

Loss on sale of equipment $250$

Loss on sale from receivables

Income tax expense

Wages expense $540$

Totals $351,410351,410147,760147,760$

Additional information

$1.$ Equipment was purchased with cash. $14,000$

$2.$ Equipment costing was sold $4,500$

Accumulated depreciation $3,500$

Gain on sale $250$

$4.$ Cash divividend declared $4,800$

$5.$ All other changes were for cash

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Requirements:

$1.$ Make the appropriate adjusting entries

$2.$ From the adjusted trail balance do the required financial statements:

MultiStep Income Statement

Statement of Retained Earnings

Classified Balance Sheet

Statement of Cash Flows $($either method$)$

$3.$ Prepare closing entries

$4.$ Prepare the post closing trial balance

$5.$ Prepare reversing entries.