The trial balance of Save-Mart Wholesale Company contained the accounts shown at December 31, the end of the company's fiscal year.

Adjustment data:
1. Depreciation is $12,000 on buildings and $9,000 on equipment. (Both are operating expenses.)
2. Interest of $4,500 is due and unpaid on notes payable at December 31.
3. Income tax due and unpaid at December 31 is $20,000.
Other data: $15,000 of the notes payable are payable next year.

Instructions
(a) Journalize the adjusting entries.
(b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31,2010.

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SAVE-MART WHOLESALE COMPANY Trial Balance December 31, 2010 Debit Credit $31,400 37,600 70,000 92,000 200,000 Cash Accounts Receivable Merchandise Inventory Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Sales Sales Discounts Cost of Goods Sold Salaries Expense Utilities Expense Repair Expense Gas and Oil Expense Insurance Expense $60,000 83,500 40,500 54,700 17,500 160,000 68,200 10,000 922,100 5,000 709,900 51,300 11,400 8,900 7,200 4,800 $1,323,000 $1,323,000