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The balances in the accounts of M Company at December 31, 2008 are as follows: Accounts payable $ 119,000, Accounts receivable $139.200, Advertising...

The balances in the accounts of M Company at December 31, 2008 are as follows:
Accounts payable $ 119,000, Accounts receivable $139.200, Advertising expenditure $12.000, Accumulated Depreciation - Buildings $31.500,
Uncollectible accounts $2.550, Buildings $315.000, Capital assets, $ 10 par $ 450.000, Cash $ 45.750, Dividends $ 12.000, Freight $10.500,
Shipping and insurance $2.100, Interest expense $5.295, Interest income $1.335, Inventory, December 31, 2007 $104.850, Land $78.000, Long-term investments $12.150, Mortgage payable $43.500, Notes Payable - Short-term $24.000, Office expenses $ 28.800, Shopping $521.130,
Discounts for the purchase $12.150, Retained earnings, December 31, 2007 $13.695, Sales $ 745.000, Discounts of sales $24.750, Returns of sales $14.400, Cost of sales $94.050, Articles expenses $3.450, Real property taxes and payroll $19.305.

Adjustments required by December 31, 2008:
(a) The available inventory is $ 135.915.
(b) Bad debts amount to a balance of $ 6,250.
(c) Buildings are depreciated at a rate of 5%.
(d) The accumulated sales expenses are $ 6.075.
(e) There are items available for a total of $ 1.050.
(f)Insurance prepaid at 31 December 2008, a total of $ 1,290.
(g) Accrued interest on long-term investments is $ 360.
(h) The real property taxes and accrued payroll is $ 1,170.
(i) accrued interest on the mortgage is $ 240.
(j) It is estimated that the income tax is 30% of income before
income tax (rounded to the dollar fence).

1. Produce a worksheet of eight columns.
• Analyze the economic event
• Record the economic event
• Report it to the general ledger
• Prepare a balance sheet
• Prepare adjusting entries
• Prepare preliminary financial statements
• Close the nominal accounts
• Prepare a balance sheet after closing.
2. Prepare financial statements using a worksheet of eight columns
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