Problem 6-5 Prepare work sheet, classified income statement, statement of retained earnings, classified balance sheet, and closing entries (based on Appendix) (L.O.5-8) The following data are for Leone Lumber Company LEONE LUMBER COMPANY Trial Balance December 31, 2018 Acct. No. 100 103 105 107 108 112 170 171 200 300 310 410 412 Debits Credits Account Title $ 90,640 Cash 159,520 Accounts Receivable 285,200 Merchandise Inventory, January 1, 2018 5,360 Supplies on Hand 4,800 Prepaid Insurance 57,600 Prepaid Rent 88,000 Equipment $ 17,600 Accumulated Depreciation-Equipment 102,800 Accounts Payable Capital Stock 220,000 Retained Earnings, 1/1/18 219,640 Sales 1,122,360 Sales Returns and Allowances 5,160 Interest Revenue 1,000 Purchases 500,840 Purchases Returns and Allowances 4,040 Transportation-In 7,840 Advertising Expense 78,000 Sales Salaries Expense 138,400 Office Salaries Expense Officers' Salaries Expense 80,800 Utilities Expense 160,000 Legal and Accounting Expense 4,800 Interest Expense 10,000 600 9,880 $1.687.440 $1,687,440 418 500 502 503 505 508 509 510 511 536 540 567 Miscellaneous Administrative Expense Additional data 1. A total of $3,400 of the prepaid insurance has expired. 2. An inventory of supplies showed that $1,700 of inventory is still on hand. 3. Prepaid rent expired during the year is $50.600. 4. Depreciation expense on store equipment is $8,800. 5. Accrued sales salaries are $4.000. 6. Accrued office salaries are $3,000. 7. Merchandise inventory on hand is $350,000 Processing Information for Decisions and Establishing Accounting Policy Required Prepare the following: A work sheet for the year ended December 31, 2018. Refer to the chart of accounts shown in a separate file at the end of the text for any other account numbers you need. A classified income statement. The only selling expenses are sales salaries, advertising, supplies, and depreciation expense equipment. c. A statement of retained earnings. d. A classified balance sheet. e. Required closing entries. Alternate Problems