Principles of Accounting Comprehensive Problem
	November 2016 Trial Balance
	DR	CR
Accounts Receivable	$378,000
Allowance for Doubtful Accounts		$25,000
Accumulated Depreciation- Building		79,000
Accumulated Depreciation- Equipment		45,600
Accumulated Amortization		3,000
Building	462,000
Cash	130,000
Dividends	0
Equipment	167,230
Goodwill	24,000
Patents	60,000
Inventory	251,000
Land	251,000
Prepaid Insurance	5,800
Accounts Payable		267,000
Notes Payable		-
Unearned Revenue		10,000
Interest Payable		-
Common Stock ($5Par)		840,000
Paid-in Capital in Excess of Par Value		40,000
Retained Earnings		295,730
Sales		833,720
Sales Returns & Allowances	10,000
Amortization Expense	200
Bad Debt Expense	-
Cost of Goods Sold	501,350
Depreciation Expense- Building	10,000
Depreciation Expense- Equipment	5,600
Interest Expense	6,000
Insurance Expense	1,670
Entertainment Expense
Postage Expense
Miscellaneous Expense
Gain/Loss on Disposal of Equipment	-
Rent Expense	69,400
Utility Expense	11,000
Wages & Salaries Expense	94,800
Totals	$ 2,439,050	$ 2,439,050

Normal Journal Entries

Date	Transaction
Dec 1	Paid rent expense of $5,000 for December.
Dec 1	Took out bank note for $100,000 with an interest rate of 12%.
Dec 3	Purchased $400,000 of inventory terms 2/10 net 30
Dec 5	Sold land for cost $25,000.
Dec 8	Sold equipment with original cost of $30,000 and accumulated depreciation of $15,000 for $12,000.
Dec 9	Purchased building for $20,000.
Dec 10	Sold inventory on account for $400,000 with a cost of $200,000
Dec 11	Paid for inventory purchased December 3.
Dec 12	Paid postage $100, Miscellaneous $200, Entertainment $85 in cash.
Dec 18	Wrote off uncollectible account $15,000.
Dec 20	Received payment in full for sale on December 10.
Dec 31	Declared and paid dividends of $0.50 per share.
Dec 31	Paid wages and salaries of $10,000.

Adjusting Entries:

Accrue interest expense interest expense on bonds issued on December 1.

Depreciation expense for the month is $2,500 for building and $1,500 for equipment.

Accrue sales for goods sold of $25,000 with a cost of goods of $10,000.

Prepaid insurance of $400 expired in December.

Unearned revenue of $10,000 with a cost of $5,000 was earned during the month.

Amortization expense for the month $500.

Allowance for doubtful accounts is 3 percent of net sales rounded to the nearest dollar.

Requirements:

1.Journalize and post normal monthly transactions to general ledger accounts in T accounts.

2.Prepare trial balance using Chapter 4 as a template. (Hint: Assets first in order of liquidity).

3.Journalize and post adjusting entries in the same T accounts as #1 above.

4.Prepare adjusted trial balance.

5.Generate income statement, statement of retained earnings, and classified balance sheet.

6.Journalize and post closing entries in the same T accounts in #1 above.

7.Prepare a post closing trial balance.