The accounts and their balances in the ledger of Stones Co. on December 31, 2008, are as follows:

The data needed for year-end adjustments on December 31 are as follows:

Instructions
1. Prepare an end-of-period spreadsheet (work sheet) for the fiscal year ended December 31, 2008. List all accounts in the order given.
2. Prepare a multiple-step income statement.
3. Prepare a statement of owner's equity.
4. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $25,000.
5. Journalize the adjusting entries.
6. Journalize the closingentries.

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9,000 Sales Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies 72,500 165,000 9,700 4,250 2,100 160,000 Sales Returns and Allowances Sales Discounts Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense- 775,000 11,900 7,100 457,200 76,400 25,000 Accumulated Depreciation- Store Equipment Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense Store Equipment Office Equipment Accumulated Depreciation- 40,300 70,000 1,600 34,000 16,000 17,200 66,700 Accounts Payable Salaries Payable Unearned Rent Note Payable 1,200 Office Equipment Office Supplies Expense Miscellaneous Administrative 125,000 134,600 (final payment due 2016) Chang Yu, Capital Chang Yu, Drawing Income Summary 1,650 25,000 Revenue Interest Expense 11,600 Physical merchandise inventory on December 31 Insurance expired during the year ._.... Supplies on hand on December 31 . . . .. . $159,000 3,700 1,100 600 Depreciation for the year: 5,000 2,800 Salaries payable on December 31: 3,100 600 500 Office salaries t on December 31