Exercise 2-20 (Algo) Worksheet [Appendix 2A]

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The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the companys year-end reporting date.

Account Title	Debits		Credits
Cash	77,610
Accounts receivable	20,750
Prepaid rent	2,200
Inventory	31,250
Equipment	54,000
Accumulated depreciation			16,200
Accounts payable			21,000
Salaries payable			0
Common stock			100,000
Retained earnings			11,500
Sales revenue			343,000
Cost of goods sold	205,800
Salaries expense	68,600
Rent expense	13,200
Depreciation expense	0
Utilities expense	13,720
Advertising expense	4,570
Totals	491,700		491,700

The following year-end adjusting entries are required:

1. Depreciation expense for the year on the equipment is $5,400.
2. Salaries at year-end should be accrued in the amount of $4,520.

Exercise 2-20 (Algo) Part 1

Required: 1. Prepare and complete a worksheet.