Reference no: EM131804428

Project - The trial balance of the Parton Wholesale Company contained the following accounts at December 31, 2010 the end of the company's calendar year.

PARTON WHOLESALE COMPANY Trial Balance 31-Dec-10
	Debit	Credit
Cash	$34,400
Accounts Receivable	36,600
Merchandise Inventory (Beginning)	62,400
Land	92,000
Buildings	197,000
Accumulated Depreciation-Buildings		$54,000
Equipment	83,500
Accumulated Depreciation-Equipment		42,400
Notes Payable		50,000
Accounts Payable		37,500
Common Stock		200,000
Retained Earnings		67,800
Dividends	10,000
Sales		886,100
Sales Discounts	4,600
Purchases	725,100
Purchase Discounts		16,000
Freight-in	12,400
Salaries Expense	69,800
Utilities Expense	9,400
Repair Expense	5,900
Gas and Oil Expense	7,200
Insurance Expense	3,500
	$1,353,800	$1,353,800

Adjustment data:

1. Depreciation is $10,000 on buildings and $9,000 on equipment. (Both are administrative expenses.)

2. Interest of $7,000 is unpaid on notes payable at December 31.

Other data:

1. Merchandise inventory on hand at December 31, 2010 is $90,000.

2. Salaries are 80% selling and 20% administrative.

3. Utilities expense, repair expense, and insurance expense are 100% administrative.

4. $15,000 of the notes payable are payable next year.

5. Gas and oil expense is a selling expense.

6. The beginning balance of accounts receivable is $34,750.

7. The amount of total assets at the beginning of the year is $469,225.

Instructions -

1) Journalize the adjusting entries.

2) Prepare a multiple-step income statement and a retained earnings statement for the year ended, as well as a classified balance sheet as of December 31, 2010.