nabled: Worksheet - 35 points i Saved Account Title Debits Credits Cash 47, 150 Accounts receivable 090 07 Supplies Prepaid rent Inventory 45 , 006 Office equipment 55,000 Accumulated depreciation 7, 150 Accounts payable 20, 000 Salaries payable 2, 000 Notes payable 27 , 000 Common stock 50, 000 Retained earnings 12, 000 Dividends 3, 750 Sales revenue 185, 000 Cost of goods sold 97, 500 Interest expense Salaries expense 20, 350 Rent expense 9 , 200 Supplies , expense Utility expense 4, 000 Totals 303, 150 303 , 150 Information necessary to prepare the year-end adjusting entries appears below. 1. The office equipment was purchased in 2019 and is being depreciated using the straight-line method over an eight-year usefu with no salvage value. 2. Accrued salaries at year-end should be $3,000. 3. The company borrowed $27,000 on September 1, 2021. The principal is due to be repaid in 10 years. Interest is payable twice year on each August 31 and February 28 at an annual rate of 10%. 4. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $300. 5. Prepaid rent at year-end should be $600. 1. Complete the worksheet below. 2-a. Use the information in the worksheet to prepare an income statement for 2021. 2-b. Use the information in the worksheet to prepare a statement of shareholders' equity for 2021. 2-c. Use the information in the worksheet to prepare a balance sheet as of December 31, 2021. 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Prev 1 of 1 Next