The December 31, 2011, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31

Question:

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.

Required:

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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...