Cold Climate Unadjusted Trial Balance December 31
Account	Debit	Credit
Cash	$95,000
Accounts Receivable	177,000
Inventory	128,250
Store Supplies	2,800
Office Supplies	1,900
Accum Depreciation - Store Fixtures		1,120
Accum Depreciation - Office Furniture		4,140
Accounts Payable		81,000
Retained Earnings		303,600
Sales		955,050
Sales Discounts	9,500
Sales Returns and Allowances	19,000
Cost of Goods Sold	535,850
Rent Expense - Office	21,600
Rent Expense - Selling	5,900
Sales Salary Expense	190,000
Office Salary Expense	150,000
Delivery Expense	8,110
Depreciation Expense - Store Fixtures	-
Depreciation Expense - Office Furniture	-
Store Supplies Expense	-
Office Supplies Expense	-
TOTALS	1,344,910	1,344,910

a)  Prepare the adjusting entries as of December 31 for each situation.

1. A physical count of store supplies showed $400 remaining. 
2. A physical count of office supplies showed $470 remaining.
3. The physical count of inventory showed $126,350 on hand.
4. Depreciation for store fixtures is $1,210 per year.
5. Depreciation for office furniture is $4,250 per year.

Journal

Date	Description	Debit	Credit
a. Dec 31
a. Dec 31
b. Dec 31
b. Dec 31
c. Dec 31
c. Dec 31
d. Dec 31
d. Dec 31
e. Dec 31
e. Dec 31

b) Prepare the Multistep Income statement as of December 31.  Hint:  Remember to update your account balances for your adjusting journal entries.

COLD CLIMATE
Income Statement
For Month Ended December 31

Description	Amount	Total	Group Total
Subcategory,Revenue:
		Single line
	Single line	Single line
Gross ProfitIncome from OperationsNet IncomeNet SalesTotal General & Admin ExpensesTotal Operating ExpensesTotal Selling Expenses		Single line
		Single line	Single line
Gross ProfitIncome from OperationsNet IncomeNet SalesTotal General & Admin ExpensesTotal Operating ExpensesTotal Selling Expenses			Single line
Subcategory,Operating Expenses
Subcategory,Selling Expenses
	Single line	Single line
Gross ProfitIncome from OperationsNet IncomeNet SalesTotal General & Admin ExpensesTotal Operating ExpensesTotal Selling Expenses		Single line
Subcategory,General and Administrative Expenses
	Single line	Single line
Gross ProfitIncome from OperationsNet IncomeNet SalesTotal General & Admin ExpensesTotal Operating ExpensesTotal Selling Expenses		Single lineSingle line
Total Operating Expenses			Single lineSingle line
Income from Operations			Single line
			Single line
Net Income			Single line

c) Prepare the 3 required closing entries to record net income as of December 31.

Journal

Date	Description	Debit	Credit
Dec 31
Dec 31