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