Reference no: EM13531673

The trial balance of Dealer"s Choice Wholesale Company contained the accounts shown at December 31, the end of the company"s fiscal year.

DEALER"S CHOICE WHOLESALE COMPANY  Trial Balance  December 31, 2012
	Debit	Credit
Cash	$ 31,400
Accounts Receivable	37,600
Inventory	70,000
Land	92,000
Buildings	200,000
Accumulated Depreciation-Buildings		$ 60,000
Equipment	83,500
Accumulated Depreciation-Equipment		40,500
Notes Payable		54,700
Accounts Payable		17,500
Common Stock		160,000
Retained Earnings		67,200
Dividends	10000
Sales Revenue		922100
Sales Discounts	6,000
Cost of Goods Sold	709,900
Salaries and Wages Expense	51,300
Utilities Expense	11,400
Maintenance and Repairs Expense	8,900
Advertising Expense	5,200
Insurance Expense	4,800
	$1,322,000	$1,322,000

Adjustment data:

1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are operating expenses.)

2. Interest of $4,500 is due and unpaid on notes payable at December 31.

3. Income tax due and unpaid at December 31 is $24,000.

Other data: $15,000 of the notes payable are payable next year.

Instructions

(a) Journalize the adjusting entries.

(b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.

(c) Prepare an adjusted trial balance.

(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2012.