| The following trial balance was taken from the books of XYZ Corporation on December 31, 2013. |
| Account | debit | credit |
| Cash | $9,000 |
| Accounts Receivable | 40,000 |
| Notes Receivable | 10,000 |
| Inventory | 44,000 |
| Prepaid Insurance | 4,800 |
| Equipment | 110,000 |
| Accumulated Depreciation--Equip. | | 15,000 |
| Accounts Payable | | 12,600 |
| Common Stock | | 44,000 |
| Retained Earnings | | 75,000 |
| Sales Revenue | | 260,000 |
| Cost of Goods Sold | 126,000 |
| Salaries and wages Expense | 50,000 |
| Rent Expense | 12,800 | ___ |
| Totals | $406,600 | $406,600 |
| At year end, the following items have not yet been recorded. |
| a. | Insurance expired during the year, $2,400. |
| b. | Depreciation on equipment, 10 year life, SL, no salvage value. |
| c. | Interest at 6% is receivable on the note for one full year. |
| d. | Accrued salaries and wages at December 31, $5,800. |
| Instructions |
| (a) | Prepare the necessary adjusting entries. |
| (b) | Prepare an Income Statement and Balance Sheet |
| (c) | Prepare the necessary closing entries. |
fitness100
intermiiate_account_021514.xls
