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The following trial balance has been extracted from the records of Acme Automotive Inc. at December 31, 2015, its fiscal year-end. The company uses the perpetual inventory system.
Required:
- Prepare adjusting entries, including general ledger account numbers and brief descriptions, for the following:
- $1,000 of sales on account has not been recorded. (Cost to Acme: $700)
- A physical count indicates that $100 of office supplies is still on hand at year-end.
- A telephone bill for $60 owing at December 31 has not yet been recorded.
- A physical count indicates that $53,000 of merchandize inventory is on hand at December 31, 2015.
- Prepare a multi-step income statement and statement of changes in equity for the year ended December 31, 2015, and a classified balance sheet at December 31.
- Prepare closing entries.
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