Response to the following problem:
The following accounts appear in the ledger of Sheldon Company on January 31, the end of this fiscal year.
Cash $ 16,400
Accounts Receivable 15,100
Merchandise Inventory 55,500
Store Supplies 1,603
Prepaid Insurance 3,080
Store Equipment 24,900
Accumulated Depreciation, Store Equipment 3,860
Accounts Payable 14,400
M. E. Sheldon, Capital 126,484
M. E. Sheldon, Drawing $ 36,000
Sales 227,000
Sales Returns and Allowances 2,000
Purchases 172,000
Purchases Returns and Allowances 2,375
Purchases Discounts 3,567
Freight In 7,491
Wages Expense 24,800
Advertising Expense 5,912
Rent Expense 12,900
The data needed for adjustments on January 31 are as follows:
a-b. Merchandise inventory, January 31, $55,750.
c. Insurance expired for the year, $1,285.
d. Depreciation for the year, $5,482.
e. Accrued wages on January 31, $1,556.
f. Supplies used during the year $1,503.
Required
1. Prepare a work sheet for the fiscal year ended January 31.
2. Prepare an income statement.
3. Prepare a statement of owner's equity. No additional investments were made during the year.
4. Prepare a balance sheet.
5. Journalize the adjusting entries.
6. Journalize the closing entries.
7. Journalize the reversing entry.