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Item 7

Item 7 12.5 points

The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,475 on January 1, 2019, and $51,425 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

	Accounts
401	Sales	$	245,000	Cr.
451	Sales Returns and Allowances		4,220	Dr.
491	Miscellaneous Income		270	Cr.
501	Purchases		102,300	Dr.
502	Freight In		1,845	Dr.
503	Purchases Returns and Allowances		3,470	Cr.
504	Purchases Discounts		1,670	Cr.
611	Salaries ExpenseSales		44,000	Dr.
614	Store Supplies Expense		2,180	Dr.
617	Depreciation ExpenseStore Equipment		1,380	Dr.
631	Rent Expense		12,200	Dr.
634	Utilities Expense		2,870	Dr.
637	Salaries ExpenseOffice		19,800	Dr.
640	Payroll Taxes Expense		4,700	Dr.
643	Depreciation ExpenseOffice Equipment		440	Dr.
646	Uncollectible Accounts Expense		590	Dr.
691	Interest Expense		480	Dr.

The worksheet of Bridget's Office Supplies contains the following owners equity accounts.

	Accounts
301	Bridget Swanson, Capital	$	62,460	Cr.
302	Bridget Swanson, Drawing		40,850	Dr.

Net income for the year $46,355. The worksheet of Bridget's Office Supplies contains the following asset and liability accounts. The balance of the Notes Payable account consists of notes that are due within a year.

	Accounts
101	Cash	$	10,005	Dr.
107	Petty Cash Fund		370	Dr.
111	Accounts Receivable		5,010	Dr.
112	Allowance for Doubtful Accounts		730	Cr.
121	Merchandise Inventory		51,425	Dr.
131	Store Supplies		970	Dr.
133	Prepaid Interest		65	Dr.
141	Store Equipment		9,900	Dr.
142	Accum. DepreciationStore Equipment		1,050	Cr.
151	Office Equipment		3,140	Dr.
152	Accum. DepreciationOffice Equipment		370	Cr.
201	Notes Payable		5,370	Cr.
203	Accounts Payable		3,595	Cr.
216	Interest Payable		45	Cr.
231	Sales Tax Payable		1,760	Cr.

Prepare a balance sheet dated December 31, 2019.