REGUIRED:

USING THE INCOME STATEMENT AND ALL INFORMATION BELOW PLEASE COMPUTE TRIAL BALANCE WITH ADJUSTING JOURNAL ENTRIES: (Begining Balance (Dr Cr), Adjusting entries(Dr Cr), Ending Balance(Dr Cr)

FPI Income Statement:

Notes:

FPI's purchases during 2015 were $115,000. It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of 263A do not apply to FPI.

Of the $5,000 interest income, $2,000 was from a West Jordan city bond used to fund public activities (issued in 2007) and $3,000 was from a money market account.

FPI's dividend income comes from publicly traded stocks that FPI has owned for two years.

FPI's compensation is as follows:

Kate $120,000

James $80,000

Other $400,000.

FPI wrote off $6,000 in accounts receivable as uncollectible during the year.

FPI's regular tax depreciation was $17,000. AMT depreciation was $13,000.

FPI distributed $60,000 to its shareholders.

FPI is not required to compute the amount in its accumulated adjustments account.

The following are FPI's book balance sheets as of January 1, 2015, and December 31, 2015.

FPI Income Statement For year ending December 31, 2015 Revenue from sales Sales returns and allowances Cost of goods sold Gross profit from operations $980,000 (10,000) (110,000) $ 860,000 Other income: Dividend income Interest income Gross income $ 15,000 5,000 $ 880,000 Expenses Compensation Depreciation Bad debt expense Meals and entertainment Maintenance Business interest Property taxes Charitable contributions Other taxes Rent Advertising Professional services Employee benefits Supplies Other expenses Total expenses Net income $(600,000) (10,000) (14,000) (2,000) (8,000) (1,000) (7000) (10,000) (30,000) (28,000) 14,000) (11,000) (12,000) (3,000) (21,000) 771,000) $109,000 FPI Income Statement For year ending December 31, 2015 Revenue from sales Sales returns and allowances Cost of goods sold Gross profit from operations $980,000 (10,000) (110,000) $ 860,000 Other income: Dividend income Interest income Gross income $ 15,000 5,000 $ 880,000 Expenses Compensation Depreciation Bad debt expense Meals and entertainment Maintenance Business interest Property taxes Charitable contributions Other taxes Rent Advertising Professional services Employee benefits Supplies Other expenses Total expenses Net income $(600,000) (10,000) (14,000) (2,000) (8,000) (1,000) (7000) (10,000) (30,000) (28,000) 14,000) (11,000) (12,000) (3,000) (21,000) 771,000) $109,000