The accounts and their balances in the ledger of Quality Sports Co. on December 31, 2010, 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 $25,000.
5. Journalize the adjusting entries.
6. Journalize the closingentries.

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$ 18,000 42,500 $ 7,100 557,000 Sales Discounts Cash Accounts Receivable Cost of Merchandise Sold Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies Store Equipment Sales Salaries Expense Advertising Expense Depreciation Expense Store Equipment Delivery Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense 218,000 101,400 8,000 4,200 45,000 2,100 282,000 6,000 Accumulated Depreciation- Store Equipment Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Salaries Payable 70,300 60,000 1,600 64,000 25,200 17,200 26,700 Office Equipment Office Supplies Expense Unearned Rent. 2,500 Note Payable (final payment, 2018) Rosario Noe, Capital Rosario Noe, Drawing 175,000 286,450 Miscellaneous Administrative Expense 1,650 10,000 Rent Revenue Interest Expense Sales 900,000 10,500 13,900 Sales Returns and Allowances