The Langer Company has prepared the following partially completed worksheet for the year ended December 31, 2007:

The following additional information is available:

(a) Salaries accrued but unpaid total $250;

(b) The $80 heat and light bill for December has not been recorded or paid;

(c) Depreciation expense totals $810 on the buildings and equipment;

(d) Interest accrued on the note payable totals $380 (this will be paid when the note is repaid);

(e) The company leases a portion of its floor space to Brix Specialty Company for $50 per month, and Brix has not yet paid its December rent;

(f) Interest accrued on the note receivable totals $80;

(g) Bad debts expense is $70; and

(h) The income tax rate is 30% on current income and is payable in the first quarter of 2008.

Required

1. Complete the worksheet. (Round to the nearest dollar.)

2. Prepare the company's financial statements.

3. Prepare (a) adjusting, and (b) closing entries in the generaljournal.

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Retained ncome Trial Balance Adjustments Statement Sheet Accounts Credit Debit CreditDebit CreditDebi Cre Debit Credit 1,000 2,700 Accounts receivable Allowance for doubtful accounts Note receivable (due 5 1/08 Invent 9,200 Buildinas and Accumulated depreciation Accounts payable Notes payable (due 4/1/2010) Capital stock (2,000 shares 20,600 8,790 4,000 6,120 Dividends distributed Sales revenue Rent revenue Lost of Salaries expense Delivery ex Heat and Other expenses 550 sold 9,050 2,750 Totals 53,680 53,680