The accounts and their balances in the ledger of LeClassic Sports Co. on December 31, 2008, are as follows:

The data needed for year-end adjustments on December 31 are as follows:

Instructions
1. Prepare an end-of-period spreadsheet (work sheet) for the fiscal year ended December 31, listing all accounts in the order given.
2. Prepare a multiple-step income statement.
3. Prepare a statement of owner's equity.
4. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $15,000.
5. Journalize the adjusting entries.
6. Journalize the closingentries.

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Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies Store Equipment 18,000 42,500 215,000 9,700 4,250 2,100 182,000 Sales Discounts Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense- 7,100 557,000 81,400 45,000 Store Equipment Delivery Expense Store Supplies Expense Miscellaneous Selling Expense ,600 Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense- 6,000 Accumulated Depreciation-- Store Equipment Office Equipment 40,300 60,000 44,000 25,200 Accumulated Depreciation-- 17,200 56,700 Office Equipment Accounts Payable Salaries Payable Unearned Rent 1,200 Note Payable (final payment 2013 125,000 217,600 Office Equipment Office Supplies Expense Miscellaneous Administrative Tanya Brill, Capital Tanya Brill, Drawing Sales 1,650 5,000 Rt Revenue 875,000 Expense 11,600 Sales Returns and Allowances 13,900 $210,000 6,800 Insurance expired during the year .._. ..............- upplies on hand on December 31 1,200 750 Office supplies .. Depreciation for the year 7,500 3,800 Salaries payable on December 31 %2,600 1,500 Office salaries Unearned rent on December 31 4,100 400