Baltimore Glass Company
Trial Balance
December 31, 2015
Acct.
No. Account Title Debit Credit
101 Cash 88,450
110 Accounts Receivable 195,613
120 Merchandise Inventory 256,250
125 Supplies on Hand 3,252
130 Prepaid Insurance 3,500
131 Prepaid Rent 7,500
150 Equipment 175,285
160 Accumulated Depreciation 24,260
202 Accounts Payable 72,555
210 Wages Payable -
301 Capital Stock 220,000
302 Retained Earnings, January 1 211,144
401 Sales 998,250
405 Sales Returns and Allowances 5,145
410 Interest Income 1,500
500 Purchases 560,880
501 Purchases Discounts 4,080
502 Purchases Returns and Allowances 1,200
505 Freight In 4,580
520 Advertising Expense 1,000
530 Sales Salaries Expense 88,600
532 Supplies Expense -
540 Office Salaries Expense 124,500
550 Utilities Expense 8,594
555 Insurance Expense -
560 Professional Fees Expense 3,000
570 Depreciation Expense -
580 Interest Expense 6,840
1,532,989 1,532,989
Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2015 rent
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet.
8. A physical count of inventory shows a value of $219,100. The periodic inventory method is used.
Do the following requirements below. Create proper headings for each statement.
1. Record adjusting journal entries from information above. It is possible that an item may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made
3. Prepare a classified income statement. Supplies is a sales expense. January 1 inventory was $219,115.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries