There are two homework problems this week. The first is below and the second one is on the second tab at the bottom left of the screenBelow you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries.Baltimore Glass CompanyTrial BalanceDecember 31, 2015Acct.No. Account Title Debit Credit101 Cash 88,450110 Accounts Receivable 195,613120 Merchandise Inventory 256,250125 Supplies on Hand 3,252130 Prepaid Insurance 3,500131 Prepaid Rent 7,500150 Equipment 175,285160 Accumulated Depreciation 24,260202 Accounts Payable 72,555210 Wages Payable –301 Capital Stock 220,000302 Retained Earnings, January 1 211,144401 Sales 998,250405 Sales Returns and Allowances 5,145410 Interest Income 1,500500 Purchases 560,880501 Purchases Discounts 4,080502 Purchases Returns and Allowances 1,200505 Freight In 4,580520 Advertising Expense 1,000530 Sales Salaries Expense 88,600532 Supplies Expense –540 Office Salaries Expense 124,500550 Utilities Expense 8,594555 Insurance Expense –560 Professional Fees Expense 3,000570 Depreciation Expense –580 Interest Expense 6,8401,532,989 1,532,989Adjusting items:1. The remaining prepaid insurance at year end is $3,0002. A physical inventory shows supplies on hand of $2,000 at year end3. The prepaid rent of $7,500 covers January 2015 rent4. Depreciation on equipment is $12,000 for the year5. At year end sales salaries of $3,000 were earned but unpaid6. At year end office salaries of $4,000 were earned but unpaid7. 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 entry2. Prepare an adjusted trial balance including the adjusting entries made3. Prepare a classified income statement. Supplies is a sales expense. January 1 inventory was $219,115.4. Prepare a statement of retained earnings5. Prepare a classified balance sheet6. Prepare closing journal entriesAccount # Account Title debit credit`Baltimore Glass CompanyTrial Balance42369Acct.No. Account Title Debit Credit101 Cash110 Accounts Receivable120 Merchandise Inventory125 Supplies on Hand130 Prepaid Insurance131 Prepaid Rent150 Equipment160 Accumulated Depreciation202 Accounts Payable210 Wages Payable301 Capital Stock302 Retained Earnings, January 1401 Sales405 Sales Returns and Allowances410 Interest Income500 Purchases501 Purchases Discounts502 Purchases Returns and Allowances505 Freight In520 Advertising Expense530 Sales Salaries Expense532 Supplies Expense540 Office Salaries Expense550 Utilities Expense555 Insurance Expense560 Professional Fees Expense570 Depreciation Expense580 Interest Expense0 0Baltimore Glass CompanyIncome StatementFor the Year Ended 12/31/2015Note on utilities, insurance, professional fees – I did not indicate where these expenses belonged so you may have put some in selling expense also.Note on depreciation – I did note indicate where this went so some of it could have gone to selling expense or even to cost of goods soldYou would have needed more information to determine thatNote on interest – you could have combined as I did or shown them as separate items.Baltimore Glass CompanyStatement of Retained EarningsFor the Year Ended 12/31/2014You could have skipped the line for dividends and had just three lines on the statement since it was zero.Baltimore Glass CompanyBalance Sheet42369Closing Entries zero out income statement accounts for new year
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