The trial balance of the Coleman-Foose Company was prepared from the record of the company on November 30, 20X2, the close of its fiscal year:
Trial Balance
November 30, 20X2
Cash 12200
Accounts receivable 16300
Aloowance for doubtful accounts 200
Inventory – 12/1/X1 14175
Unexpired insurance 660
Supplies on hand 265
Land 18000
Building 22000
Accumulated depreciation – building 6000
Office equipment 6800
Accumulated depreication – office equipment 2100
Accounts payable 11400
Mortgage payable 9000
Capial stock 40000
Retained earnings 2200
Dividends 8000
Sales 172000
Sales returns and allowances 600
Sales discounts 2700
Purchases 109800
Purchases returns and allowances 1200
Purchase discounts 2300
Transportation-in 900
Salaries expense 23000
Travel expense 5200
Office expense 1300
Professional fee expense 2500
Telephone expense 1200
Building repair expense 800
Total 246400 246400
Additional data:
A. The allowance for doubtful accounts should be increase by $400
B. Merchandise inventory at november 30, 20×2 was 16200
C. Unexpired insurance on november 30, 20×2 amounted to 440
D. Supplies on hand november 30, 20×2, 120
E. Building depreciation is calculated at 5% per year
F. Office depreciation is calculated at 10% per year
G. Salaries accrued at november 30, 20×2, are 400
1. Prepare a work sheet
2. Prepare an income statement for the year
3. Prepare closing entries