The December 31, 2011, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's fiscal year-end.
The following year-end adjusting entries are required:
a. Depreciation expense for the year on the equipment is $10,000.
b. The company has determined that the allowance for uncollectible accounts should be $5,000.
c. Accrued wages payable at year-end should be $4,000.
1. Prepare and complete a worksheet similar to Illustration 2A–1.
2. Prepare an income statement for 2011 and a balance sheet as of December 31, 2011.