Unadjusted Adjusted Unadjusted Adjusted

Accounts

Payable

$ 25,410 $ 25,410

Inventory $29,300 $29,300

Accounts

Receivable

31,390 31,390

Notes payable 33,100 33,100

Accumulated

Dep.

Equipment

33,500 44,100

Prepaid

Insurance

10,100 2,800

Cash 26,700 26,700

Property Tax

Expense

2,060

Common

Stock

54,300 54,300

Property Taxes

Payable

2,060

Cost of Goods

Sold

507,500 507,500

Rent Expenses 15,000 15,000

Dividends 12,000 12,000

Retained

Earnings

41,380 41,380

Freight-Out 5,200 5,200

Salaries and

Wages

Expense

95,300 95,300

Equipment 144,000 144,000

Sales Revenue 709,000 709,000

Depreciation

Expense

10,600

Sales

Commissions

Expense

6,300 10,700

Insurance

Expense

7,300

Sales

Commissions

Payable

4,400

Interest

Expense

6,000 6,000

Sales Returns

and

Allowances

7,700 7,700

Interest

Revenue

8,100 8,100

Utilities

Expense

8,300 8,300

Prepare a multiple-step income statement. (10 marks)

ii. Prepare a retained earnings statement. (2 marks)

iii. Journalise the adjustment entries.