XYZ Company’s December 31, 2014 trial balance is as follows

XYZ Company’s December 31, 2014 trial balance is as follows:.9px;=”” 12px=””>XYZ CorporationTrial BalanceDecember 31, 2014AccountDebitCreditCash$43,500Accounts Receivable53,500Allowance for Doubtful Accounts1,500Notes Receivable30,000Merchandise Inventory55,000Land20,000Building150,000Accumulated Depreciation, Building$15,000Equipment50,000Accumulated Depreciation, Equipment21,000Goodwill26,000Accounts Payable25,000Long Term Notes Payable75,000Common Stock, $10 par, 2,000 shares authorized & outstanding20,000Retained Earnings147,000Sales Revenue700,000Salaries Expense150,000Utilities Expense3,500Cost of Goods Sold350,000Administrative Expenses55,000Sales Expenses15,000_______Totals$1,003,000$1,003,000XYZ is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.Acct220 Page 1 of 9Additional Information:a. Notes Receivable is a 3-months, 6% note accepted on November 1, 2014.b. Long Term Notes Payable is a 5-year, 5% note, that was signed on July 1, 2014. Interest is payable annually.c. Building is depreciated at 3% per year. There is no salvage value.d. Equipment is depreciated at 15% year. There is no salvage value.e. XYZ discovered, on December 30th, that the inexperienced bookkeeper recorded in the general journal and general ledger that day’s $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.f. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.g. Salaries for the last half of December, payable in January, amount to $5,500.h. XYZ estimates that of the Accounts Receivable 5% will not be collectable.Required:a. Prepare in journal form, any required correcting entriesb. Prepare in journal form, all end-of-the period adjusting entriesc. Prepare a December adjusted trial balanced. Prepare a classified balance sheet for the year ended December 31, 2014e. Prepare in journal form, the closing entries for the year ended December 31, 2014

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