Part A - Record all necessary transactions on the journal entry form given. Assume no journal entries have been made for the year.

Part B- Prepare an Adjusted Trial Balance on the form provided

Part C- Prepare an Income Statement for the Year Ended December 31, 2023

Part D- Prepare a Statement of Retained Earnings for the year ended December 31, 2023

Part E- Prepare a Balance Sheet at December 31, 2023

1. Purchase of inventory for resale was $1,750,000. All purchases were made on account.

2. Payments for inventory purchased on account were $1,250,000.

3. Sales of merchandise totaled $3,980,000. Of this amount, 70% of the sales were made on account; the remaining sales were paid in cash.

4. The cost of the merchandise sold during the year was $2,400,000

5. Collections on Accounts Receivable during the year were $2,200,000.

6. Cash payments to employees during the year, totaled $750,000. This was both towards unpaid salaries at the beginning of the year and for salaries earned during 2022.

7. On March 1, 2023, office supplies with a value of $70,000 were purchased in cash and placed in the storage room.

8. Paid $285,000 cash for utilities during the year.

9. During the year $65,000 of customer accounts were written off as uncollectible.

10. Accrued wages payable at year-end should be $55,000.

11. On July 1, 2023, a check for $870,000 was issued for a one-year advertising contract to be expensed evenly over the next 12 months. The payment for the advertising contract has not been recorded.

12. Depreciation expense for the year on the Equipment is calculated using straight-line depreciation. The life of the Equipment is 10 years and the company estimates a residual value of zero.

13. The company has determined that the allowance for uncollectible accounts should be $60,000.

14. At the end of the year, the staff determined that $15,000 of office supplies was still in the storage. 15. Dividends of $500,000 were declared and paid during the year