The unadjusted trial balance of Mesa Inc., at the company's year end of December 31 follows: Additional information and adjustment data: 1. The 12-month insurance

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The unadjusted trial balance of Mesa Inc., at the company's year end of December 31 follows:

Additional information and adjustment data:
1. The 12-month insurance policy was purchased and was effective February 1, 2012.
2. There was $750 of supplies on hand on December 31.
3. Depreciation expense for the year is $6,000 for the buildings and $4,500 for the equipment.
4. Salaries of $750 are accrued and unpaid at December 31.
5. Accrued interest expense at December 31 is $735.
6. Unearned revenue of $975 is still unearned at December 31. On the sales revenue that was earned, the cost of goods sold was $2,000.
7. Of the mortgage payable, $9,800 is payable next year.
8. Income tax of $500 is due and unpaid.
9. A physical count of inventory indicates $23,800 on hand at December 31.
10. Common shares of $3,000 were issued during the year.
Instructions
(a) Prepare T accounts and enter the trial balance amounts.
(b) Record and post the adjusting entries, assuming the company adjusts its accounts annually.
(c) Prepare an adjusted trial balance at December 31, 2012.
(d) Prepare a multiple-step income statement, statement of changes in equity, and statement of financial position for the year.

MESA INC. Trial Balance December 31, 2012 Credit Accounts receivable 3 Accumulated depreciation-buildings Accumulated depreciation-equipment 147,100 Sales returns and allowances 171,225 $537,030 537,030