The trial balance of Mesa Wholesale Company contained the following aecounts at December 31, the end of the company's fiscal year:

Adjustment data:
1. Depreciation is \(\$ 10,000\) on buildings and \(\$ 9,000\) on equipment. (Both are administrative expenses.)
2. Interest of \(\$ 7,000\) is due and unpaid on notes payable at December 31 .
\section*{Other data:}
1. Salaries are \(80 \%\) selling and \(20 \%\) administrative.
2. Utilities expense, repair expense, and insurance expense are \(100 \%\) administrative.
3. \(\$ 15,000\) of the notes payable are payable next year.
4. Gas and oil expense is a selling expense.
\section*{Instructions}

(a) Enter the trial balance on a work sheet and complete the work sheet.

(b) Prepare a multiple-step income statement and retained earnings statement for the year, and a classified balance sheet at December 31, 1998.

(c) Journalize the adjusting entries.

(d) Journalize the closing entries.

(e) Prepare a post-closing trial balance.

Transcribed Image Text:

MESA WHOLESALE COMPANY Trial Balance December 31, 1998 Cash Accounts Receivable Merchandise Inventory Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Debit Credit $ 33,400 37,600 90,000 92,000 197,000 $ 54,000 83,500 42,400 50,000 37,500