recorded except for the items described below as unrecorded transactions.

Debit Credit

Cash $ 28,000

Accounts receivable 36,800

Allowance for doubtful accounts $ 500

Notes receivable (due in 2017) 10,000

Inventory 36,200

Prepaid insurance 3,600

Land 20,000

Buildings 150,000

Acc Depn, building 50,000

Equipment 60,000

Acc Depn, equipment 24,000

Accounts payable 27,300

Unearned rent revenue 6,000

Notes payable (due in 2017) 11,000

Notes payable (due in 2029) 35,000

Common stock, no par 50,000

Retained Earnings 63,600

Dividends 21,000

Sales Revenue 900,000

Cost of goods sold 630,000

Salaries & wages expense 110,000

General expenses 61,800 _______

Total $1,167,400 $1,167,400

Unrecorded transactions:

1. On May 1, 2016, Mitchell made a cash purchase of equipment for $13,200 plus sales taxes of $600.

2.On July 1, 2016, Mitchell sold for $3,500 cash equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2016, was $1,800. This equipment had been depreciated using the straight-line method assuming a residual value of $500 and a useful life of 5 years.

3.December transactions:

a. Dec 8, received $18,700 from customers in payment on their accounts (no discount is applicable).

b.Dec 10, sold merchandise for cash $9,450. The cost of the merchandise sold is $5,670.

c.Dec 14, purchased merchandise on account from Elizabeth Company, $16,000, terms 2/10,n/30.

d.Dec 15, purchased supplies for cash $500.

e.Dec 16, returned merchandise to Elizabeth Company, $1,000.

f.Dec 17, sold merchandise on account to Perry Company $13,400, terms 3/15, n/30. The cost of the merchandise was $8,040.

g.Dec 19, Paid $9,000 for wages due employees.

h.Dec 22, paid Elizabeth Company.

i.Dec 23, wrote off an uncollectible account in the amount of $600.

j.Dec 29, received payment from Perry Company.

4.Mitchell aged its accounts receivable and estimated that uncollectible accounts will be $4,000.

5.The note receivable is a one-year, 8% note dated April 1, 2016. No interest accrual has been recorded.

6.The balance in prepaid insurance represents payment of a $3,600, 6-month premium paid on September 1, 2016.

7.The building is being depreciated using the straight-line method over 30 years. The residual value is $30,000.

8.The equipment owned prior to this year (2016) is being depreciated using the straight-line method over 5 years and the residual value is 10% of cost.

9.The equipment purchased on May 1, 2016, is being depreciated using the straight-line method over 5 years with a residual value of $0.

10.Unpaid salaries and wages at December 31, 2016, total $4,000.

11.The unearned rent revenue of $6,000 was received on December 1, 2016, for 3 months rent. Mitchell began renting an unused portion of their building to a tenant on that date.

12.Both the current and long-term notes payable are dated March 1, 2016, and carry a 6% interest rate. No interest accrual has been recorded.

REQUIRED:

a. Prepare journal entries for the unrecorded transactions listed above,

b.Post the entries to T-accounts. The following accounts might also be used when journalizing and posting the above transactions: interest receivable, interest expense, interest payable, interest revenue, salaries & wages payable, rent revenue, gain on disposal of plant asset, loss on disposal of plant asset, bad debt expense, depreciation expense, insurance expense, rent expense, and supplies.

c.Prepare a December 31, 2016, trial balance.

d.Prepare the necessary closing journal entries.

e.Prepare a multiple-step income statement for 2016.

f.Prepare a stockholders equity statement for 2016.

g.Prepare a December 31, 2016, classified balance sheet.