A) and B)

PART II (60 POINTS) The normal account balances appearing in the ledger of Akins Company as of December 31, 2017, before adjustments, are listed below: Cash Freight Out $4,000 5,500 15,000 Accounts Payable 3,300 85,000 35,000 Office Supplies Withdrawals Accumulated Depreciation- 10,000 3,000 Sales Purchases Advertising Expense 2,000 Purchase Discounts Merchandise Inventory 26,000 Freight In Office Building Sales Discounts Office Building Capital 12,000 30,000 29,600 5,000 1,800 OTHER INFORMATION (ADJUSTMENT DATA) 1) A physical inventory of the merchandise was taken on December 31, 2017 and it was valued at $22,000. The Periodic Inventory Method is used. 2) The supplies inventory at December 31, 2017 was $500 3) The estimated life of the building is 30 years and is depreciated using the straight line method of depreciation PREPARE A) A Worksheet (40 Points) B) A Classified Income Statement. (20 Points)