balance

Smith Manufacturing, Inc. has  asked that you assist with some  bookkeeping services. The company is nearing  year-end and needs help to  prepare adjusting and closing entries. Following is  the information  that you need to prepare the entries:

• Bad       debts are estimated at 1% of Net Sales.
• There       is an $8,000 balance of unexpired insurance in the Prepaid Insurance       account.
• A       physical inventory determined that there is $40,000 balance in inventory.
• Buildings       are depreciated on a straight-line basis over 20 years, no salvage value. 
• Equipment       is depreciated on a straight-line basis over ten years, no salvage value.
• All       interest remained unpaid at year-end.
• There       was $2,000 in salaries payable at year-end.

Download the following trial  balance for Smith Manufacturing, Inc.  to assist in your preparation of the  adjusting and closing entries.