The December 31, 2018, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's fiscal year-end.

The following year-end adjusting entries are required:
a. Depreciation expense for the year on the equipment is $10,000.
b. Accrued salaries and wages payable at year-end should be $4,000.
Required:
1. Prepare and complete a worksheet similar to Illustration 2A-1.
2. Prepare an income statement for 2018 and a balance sheet as of December 31, 2018.

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Account Title Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation-equipment Accounts payable Salaries and wages payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries and wages expense Rent expense Depreciation expense Utility expense Advertising expense Debits Credits 20,000 35,000 5,000 50,000 100,000 30,000 25,000 4隼 100,000 29,000 323,000 180,000 71,000 30,000 12,000 Totals 507,000 507,000