UNDER THE PERIODIC INVENTORY SYSTEM: Instructions Journalize the July transactions for (1) Tramley Company and for (2) Simpson Co. PROBLEM E4 Preparation of worksheet Financial statements, and Adjusting and closing entries --- Periodic inventory system The accounts and their balances in the ledger of bait and tackle Co, on December 31, 2003 are as follows: Cash $38,000 Accounts Receivable 112,500 Merchandise inventory 180,000 Prepaid insurance 9,700 Store supplies 4,250 Office supplies 2,100 Store equipment 132,000 Accumulated depreciation-store equipment 40,300 Office equipment 50,000 Accumulated depreciation- office equipment 17,200 Accounts payable 66,700 Salaries payable Unearned rent 1,200 Note payable (final payment,2010) 105,000 Capital stock 25,000 Retained earnings 129,600 Dividends 40,000 Income summary Sales 915,000 Sales returns and allowances 11,900 Sales discount 7,100 Purchases 540,000 Purchase returns allowances 10,100 Purchase Discounts 4,900 Transport in 6,200 Sales salaries expense 71,400 Advertising expense 25,000 Depriciation Expense---store equipment Store supplies expense Miscellaneous selling Expense 1,600 Office salaries expense 44.000 Rent Expense 26,000 Insurance Expense Depreciation Expense-Office Equipment Office supplies expense Miscellaneous Adminstrative Expense $ 1,650 Rent Revenue Interest Expence 11,600 The Data needed for year-end adjustments on December 31 are as follows: Merchandise Inventory on December 31. $196.000 Insurance expiered during the year 5,400 Supplies on hand on December 31: Store Supplies 1,300 Office Supplies.. 750 Depriciation for the year: Store Equipment. 7,500 Office Equipment 3,800 Salaries Payable on December 31: Sales salaries.. $3,850 Office salaries.. 1,150 5,000 Unearned rent on December 31. 400 Instructions 1. Prepare a work sheet for the fisical year ended December 31, listing all accounts in the order givein. 2. Prepare the multiple-step income statement. 3. Prepare a retained earnings statement. 4. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $15,000. 5. Journalize the adjusting entries. 6. Journalize the closing entries