The trial balance for Cycle Tech Bicycles, prepared on a ten-column work sheet, is included in your working papers.

Instructions

1. Complete the work sheet for the year ended December 31. Use the following information to make the adjustments. Ending merchandise inventory $25,191 Ending supplies inventory 1,221 Expired insurance 825 Total federal corporate income taxes for the year 3,472

2. Prepare an income statement.

3. Prepare a statement of retained earnings.

4. Prepare a balance sheet.

Transcribed Image Text:

Cycle Tech Bicycles Work Sheet For the Year Ended December 31, 20-- ACCOUNT NAME ACCT. NO. 1 101 Cash in Bank 2 115 Accounts Receivable 3 125 Merchandise Inventory 4 130 Supplies 5 135 Prepaid Insurance 6 140 Store Equipment 7 145 Office Equipment 8 201 Accounts Payable 9 210 Fed. Corp. Income Tax Payable 10 211 Emplys' Fed. Inc. Tax Payable 11 212 Emplys' State Inc. Tax Payable 12 213 Social Security Tax Payable 13 214 Medicare Tax Payable 14 215 Sales Tax Payable 15 216 Fed. Unemployment Tax Payable 16 217 State Unemployment Tax Payable TRIAL BALANCE DEBIT 2193100 178200 2402800 415900 180000 2489500 1611300 CREDIT 1122400 52200 14400 41300 13400 191500 5400 27100