Wilburton Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the beginning of 2009 were:

Cash ....................$ 2,200

Accounts Receivable ............. 4,400

Supplies, Feed ................. 24,100

Supplies, Straw ................ 3,700

Land .................... 167,000

Buildings ...................115,000

Accumulated Depreciation, Buildings ....... 36,000

Equipment .................. 57,000

Accumulated Depreciation, Equipment ...... 16,500

Accounts Payable ............... 23,700

Income Taxes Payable .............. 15,100

Interest Payable ............... 2,700

Wages Payable ................ 14,200

Notes Payable (due in 2013) .......... $ 60,000

Common Stock ................150,000

Retained Earnings ............... 55,200

During 2009, the following transactions occurred:

a. Wilburton provided animal care services, all on credit, for $210,300. Wilburton rented stables to customers who cared for their own animals and paid cash of $20,500. Wilburton rented its grounds to individual riders, groups, and show organizations for $41,800 cash.

b. There remains $15,600 of accounts receivable to be collected at December 31, 2009.

c. Feed in the amount of $62,900 was purchased on credit and debited to the supplies, feed account.

d. Straw was purchased for $7,400 cash and debited to the supplies, straw account.

e. Wages payable at the beginning of 2009 were paid early in 2009.Wages were earned and paid during 2009 in the amount of $112,000.

f. The income taxes payable at the beginning of 2009 were paid early in 2009. The accounts payable at the beginning of the year were also paid during the year. There remains $13,600 of accounts payable unpaid at year-end.

g. One year's interest at 9 percent was paid on the note payable on July 1, 2009.

h. During 2009, Jon Wilburton, a principal stockholder, purchased a horse for his wife Jennifer to ride. The horse cost $7,000, and Wilburton used his personal credit to purchase it. The horse is stabled at the Wilburtons' home rather than at the riding stables.

i. Property taxes were paid on the land and buildings in the amount of $17,000.

j. Dividends were declared and paid in the amount of $7,200.

The following data are available for adjusting entries:

Feed in the amount of $26,000 remained unused at year-end. Straw in the amount of $4,400 remained unused at year-end.

Annual depreciation on the buildings is $6,000.

Annual depreciation on the equipment is $5,500.

Wages of $4,000 were unrecorded and unpaid at year-end.

Interest for six months at 9 percent per year on the note is unpaid and unrecorded at year-end.

The income tax rate is 30 percent.

Required:

1. Post the 2009 beginning balances to T-accounts. Prepare journal entries for transactions a through j and post the journal entries to T-accounts adding any new T-accounts you need.

2. Prepare the adjustments and post the adjustments to the T-accounts adding any new T-accounts you need.

3. Prepare an income statement.

4. Prepare a statement of changes in retained earnings.

5. Prepare a classified balance sheet.

6. Prepare closing entries.

7. Did you include transaction h among Wilburton's 2009 journal entries? Why or why not?