The general ledger accounts for River’s Edge Canoe & Kayak as of December 31, the end of the period, appear in the working papers.

Instructions 

In your working papers:

1. Prepare a trial balance on a ten-column work sheet.

2. Complete the work sheet. Use the following adjustment information.

Merchandise inventory, December 31                    $20,000

Supplies inventory, December 31                                    900

Unexpired insurance, December 31                             1,800

Total federal corporate income taxes for the year    2,965

3. Prepare an income statement from the work sheet information.

4. Prepare a statement of retained earnings.

5. Prepare a balance sheet.

6. Journalize and post the adjusting entries. Begin on general journal page 14.

7. Journalize and post the closing entries.

8. Prepare a post-closing trial balance.