accounting practice problem 8

Required information (The following information applies to the questions displayed below.) The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's year-end reporting date. Credits Debits 20,000 35,000 5,000 50,000 100,000 Account Title Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation Accounts payable Salaries payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Utilities expense Advertising expense Totals 30,000 25,000 0 100,000 29,000 323,000 180,000 71,000 30,000 0 12,000 4,000 507,000 507,000 The following year-end adjusting entries are required: a. Depreciation expense for the year on the equipment is $10,000, b. Salaries at year-end should be accrued in the amount of $4,000. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement for 2021. WOLKSTEIN DRUG COMPANY Income Statement For the Year Ended December 31, 2021 Gross profit Operating expenses: Total operating expenses Net income Income Statement Balance Sheet> WOLKSTEIN DRUG COMPANY Balance sheet At December 31, 2021 Assets Current assets: Total current assets Property and equipment: Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Shareholders' equity: Total shareholders' equity Current assets: Total current assets Property and equipment: Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Shareholders' equity: Total shareholders' equity Total liabilities and shareholders' equity Income Statement Balance Sheel