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Below you will see an unadjusted trial balance run at year end ²ollowed by in²orma³on needed to make Bal³more Glass CompanyTrial BalanceDecember 31, 2015

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There are two homework problems this week.  The first is below and the second one is on the second tab at the bottom left of the screen
Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries.
Baltimore Glass Company
Trial Balance
December 31, 2015
Acct.
No.Account TitleDebitCredit
101Cash          88,450
110Accounts Receivable       195,613
120Merchandise Inventory       256,250
125Supplies on Hand            3,252
130Prepaid Insurance            3,500
131Prepaid Rent            7,500
150Equipment       175,285
160Accumulated Depreciation          24,260
202Accounts Payable          72,555
210Wages Payable                   –  
301Capital Stock       220,000
302Retained Earnings, January 1       211,144
401Sales       998,250
405Sales Returns and Allowances            5,145
410Interest Income            1,500
500Purchases       560,880
501Purchases Discounts            4,080
502Purchases Returns and Allowances            1,200
505Freight In            4,580
520Advertising Expense            1,000
530Sales Salaries Expense          88,600
532Supplies Expense                   –  
540Office Salaries Expense       124,500
550Utilities Expense            8,594
555Insurance Expense                   –  
560Professional Fees Expense            3,000
570Depreciation Expense                   –  
580Interest Expense            6,840
    1,532,989     1,532,989
Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2016 rent 
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet.
8. A physical count of inventory shows a value of $219,100.  The periodic inventory method is used.
Do the following requirements below.  Create proper headings for each statement.
1. Record adjusting journal entries from information above.  It is possible that an item may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made
3. Prepare a classified income statement.  Supplies is a sales expense.  January 1, 2015 merchandise inventory was 256,250.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries
Account #Account Titledebitcredit
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Baltimore Glass Company
Trial Balance
42369
Acct.
No.Account TitleDebitCredit
101 Cash
110 Accounts Receivable
120 Merchandise Inventory
125 Supplies on Hand
130 Prepaid Insurance
131 Prepaid Rent
150 Equipment
160 Accumulated Depreciation
202 Accounts Payable
210 Wages Payable
301 Capital Stock
302 Retained Earnings, January 1
401 Sales
405 Sales Returns and Allowances
410 Interest Income
500 Purchases
501 Purchases Discounts
502 Purchases Returns and Allowances
505 Freight In
520 Advertising Expense
530 Sales Salaries Expense
532 Supplies Expense
540 Office Salaries Expense
550 Utilities Expense
555 Insurance Expense
560 Professional Fees Expense
570 Depreciation Expense
580 Interest Expense
0 0
Baltimore Glass Company
Income Statement
For the Year Ended 12/31/2015
Note on utilities, insurance, professional fees – I did not indicate where these expenses belonged so you may have put some in selling expense also.
Note on depreciation – I did note indicate where this went so some of it could have gone to selling expense or even to cost of goods sold
   You would have needed more information to determine that
Note on interest – you could have combined as I did or shown them as separate items.
Baltimore Glass Company
Statement of Retained Earnings
For the Year Ended 12/31/2015
You could have skipped the line for dividends and had just three lines on the statement since it was zero.
Baltimore Glass Company
Balance Sheet
As of December 31, 2015
Closing Entries zero out income statement accounts for new year
 
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