Prepare a work sheet for the fiscal year ended december

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Reference no: EM131123454

The accounts and their balances in the ledger of Viaduct Co. on December 31, 2006, are as follows:

Cash

$ 18,000

Sales

$815,000

Accounts Receivable

82,500

Sales Returns and Allowances

11,900

Merchandise Inventory

165,000

Sales Discounts

7,100

Prepaid Insurance

9,700

Cost of Merchandise Sold

476,200

Store Supplies

4,250

Sales Salaries Expense

76,400

Office Supplies

2,100

Advertising Expense

25,000

Store Equipment

157,000

Depreciation Expense-

 

Accumulated Depreciation-

 

Store Equipment

 

Store Equipment

40,300

Store Supplies Expense

 

Office Equipment

50,000

Miscellaneous Selling Expense

1,600

Accumulated Depreciation-

 

Office Salaries Expense

34,000

Office Equipment

17,200

Rent Expense

16,000

Accounts Payable

66,700

Insurance Expense

 

Salaries Payable

 

Depreciation Expense-

 

Unearned Rent

1,200

Office Equipment

 

Note Payable

 

Office Supplies Expense -

 

(final payment due 2016)

105,000

Miscellaneous Administrative

 

Robbin Jaeger, Capital

134,600

Expense

1,650

Robbin Jaeger, Drawing

30,000

Rent Revenue

 

Income Summary

 

Interest Expense

11,600

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

Physical merchandise inventory on December 31

 

$157,500

Insurance expired during the year

 

4,000

Supplies on hand on December 31

 

 

Store supplies

 

1,100

Office supplies

 

600

Depreciation for the year:

 

 

Store equipment

 

4,500

Office equipment

 

2,800

Salaries payable on December 31:

 

 

Sales salaries

$2,850

 

Office salaries

800

3,650

Unearned rent on December 31

 

400

Instructions

1. Prepare a work sheet for the fiscal year ended December 31, 2006. List all ac-counts 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 $15,000.

5. Journalize the adjusting entries.

6. Journalize the closing entries.

Reference no: EM131123454

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