| There are two homework problems this week. The first is below and the second one is on the second tab at the bottom left of the screen |
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| Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries. |
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| Baltimore Glass Company |
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| Trial Balance |
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| December 31, 2015 |
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| Acct. |
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| No. |
Account Title |
Debit |
Credit |
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| 101 |
Cash |
88,450 |
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| 110 |
Accounts Receivable |
195,613 |
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| 120 |
Merchandise Inventory |
256,250 |
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| 125 |
Supplies on Hand |
3,252 |
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| 130 |
Prepaid Insurance |
3,500 |
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| 131 |
Prepaid Rent |
7,500 |
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| 150 |
Equipment |
175,285 |
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| 160 |
Accumulated Depreciation |
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24,260 |
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| 202 |
Accounts Payable |
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72,555 |
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| 210 |
Wages Payable |
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– |
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| 301 |
Capital Stock |
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220,000 |
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| 302 |
Retained Earnings, January 1 |
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211,144 |
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| 401 |
Sales |
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998,250 |
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| 405 |
Sales Returns and Allowances |
5,145 |
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| 410 |
Interest Income |
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1,500 |
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| 500 |
Purchases |
560,880 |
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| 501 |
Purchases Discounts |
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4,080 |
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| 502 |
Purchases Returns and Allowances |
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1,200 |
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| 505 |
Freight In |
4,580 |
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| 520 |
Advertising Expense |
1,000 |
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| 530 |
Sales Salaries Expense |
88,600 |
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| 532 |
Supplies Expense |
– |
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| 540 |
Office Salaries Expense |
124,500 |
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| 550 |
Utilities Expense |
8,594 |
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| 555 |
Insurance Expense |
– |
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| 560 |
Professional Fees Expense |
3,000 |
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| 570 |
Depreciation Expense |
– |
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| 580 |
Interest Expense |
6,840 |
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1,532,989 |
1,532,989 |
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| Adjusting items: |
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| 1. The remaining prepaid insurance at year end is $3,000 |
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| 2. A physical inventory shows supplies on hand of $2,000 at year end |
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| 3. The prepaid rent of $7,500 covers January 2016 rent |
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| 4. Depreciation on equipment is $12,000 for the year |
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| 5. At year end sales salaries of $3,000 were earned but unpaid |
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| 6. At year end office salaries of $4,000 were earned but unpaid |
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| 7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet. |
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| 8. A physical count of inventory shows a value of $219,100. The periodic inventory method is used. |
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| Do the following requirements below. Create proper headings for each statement. |
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| 1. Record adjusting journal entries from information above. It is possible that an item may not require an entry |
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| 2. Prepare an adjusted trial balance including the adjusting entries made |
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| 3. Prepare a classified income statement. Supplies is a sales expense. January 1, 2015 merchandise inventory was 256,250. |
| 4. Prepare a statement of retained earnings |
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| 5. Prepare a classified balance sheet |
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| 6. Prepare closing journal entries |
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