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Omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines, and double-underlines where required.Question 1(40 points)XYZ Company's December 31, 2015, trial balance is as follows:XYZ CompanyTrial BalanceDecember 31, 2015AccountDebitCreditCash$ 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 and 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 and closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.Additional Information:a.Notes Receivable is a 3-month, 6% note accepted on November 1, 2015.
b.Long-Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2015. Interest is payable annually.c.Building is depreciated at 3% per year. There is no salvage value.d.Equipment is depreciated at 15% per year. There is no salvage value.e.XYZ discovered, on December 30, 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 entries.b.Prepare in journal form, all end-of-the-period adjusting entries.c.Prepare a December adjusted trial balance.d.Prepare a classified balance sheet for the year ended December 31, 2015.e.Prepare in journal form, the closing entries for the year ended December 31, 2015.Question 1 options:Skip Toolbars for .More Insert actions.Show All ComponentsSaveQuestion 2(8 points)XYZ Company uses the period method and had the following inventory events during January:DateUnitsPurchasedUnitCostDateUnitsSoldUnit SalesPrice