Based on the adjusted trial balance the additional information, prepare an Income Statement, Balance Sheet, Stmt of Changes in Stockholder"s Equity, Stmt of Cash Flows

Music Warehouse

Adjusted Trial Balance

December 31, 2008

Debit. Credit

Cash. $24,675

Accts Receivable. 5,625

Inventory. 65,980

Land. 93,000

Building. 289,000

Accumulated Depreciation. 75,000

Notes Payable. 85,000

Accts Payable. 53,600

Interest Payable. 4,750

Common Stock. 10,000

Additional Paid-in Capital. 120,000

Dividends. 10,000

Retained Earnings. 59,980

Sales. 937,500

Sales Discounts. 22,675

Cost of Goods Sold. 723,000

Salaries. 81,000

Utilities. 8,900

Repairs & Maintenance. 5,225

Telephone. 2,850

Interest Expense. 4,400

Depreciation Expense. 9,500

$1,345,830. 1,345,830

*Loss as a result of hurricane damage on the building: $17,000(assume that the building is not located in an area that sustains frequent hurricane damage)

*Loss because of the discontinuation of the cassette tape music segment: $26,875

*Beginning of the year balance of common stock: $8,000 (assume that changes are related to issuance of common stock)

*Beginning of the year balance of additional paid-in capital: $102,000

*Effective income tax rate: 35%

this was all that was given to me