Wood Furniture World, Ltd. Trial Balance Worksheet December 31, 2016 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Cash 6,400 Accounts receivable 16,200 Merchandise inventory 96,000 Office suppllies 1,290 Prepaid Insurance 1,860 Store equipment 75,000 Accumulated depreciation - store equipment 18,500 Office equipment 50,000 Accumulated depreciation - office equipment 15,000 Accounts payable 22,200 Short-term note - line of credit 40,000 Salaries payable Accrued taxes 720 Accrued interest Unearned revenue - customer downpayments 4,500 Long-term loans payable 15,000 Common stock 40,000 Retained earnings 62,050 Dividends 12,500 Sales 450,000 Sales discounts 6,000 Sales returns and allowances 16,500 Cost of goods sold 275,000 Sales salaries expense 39,000 Administration salaries expense 26,000 Payroll taxes 5,900 Employee benefits 4,800 Rent expense 15,000 Advertising expense 8,200 Insurance expense 1,460 Office suppllies expense 900 Repairs and maintenance expense 2,600 Utilities expense 5,760 Depreciation - store equipment Depreciation - office equipment Interest expense 1,600 Totals 667,970 667,970 Net income Totals Adjusting Entries: Debit Credit Merchandise Inventory 94,185 Note: adjusting entries do not need descriptions Wood Furniture World uses a perpetual inventory system and the inventory count on 12-31-16 was $94,185. The annual premium for the insurance policy was paid on November 1, 2016 for $1,860 and posted to prepaid insurance. The office supplies were counted on 12-31-16 and had a balance of $775. The long-term debt payment is made at the end of each month and principal and interest are broken out of the payment when recorded However, the last time that an interest payment was made on the line of credit was 10-1-16. The balance from 10-1-16 to 12-31-16 averaged 25,000 and the interest rate is 4%. The sales staff has salaries of $120 per day and the admin staff has salaries of $80 a day. The last payroll was paid on 12-30-16 for days worked through 12-29-16. Depreciation is figured on both types of equipment at sraight line over 10 years. The actual customer downpayments left at 12-31-16 are $3,875. Note for 12-31-16: Current portion of long-term debt $2,500 For determining sales expenses and administration expenses, assume the following: Payroll taxes and employee benefits are in the % of the salaries. Rent, utiiities and repairs are 25% for the office and 75% for the showroom.