Chapter 3, Problem 11P

Worksheet Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2019:

The following additional information is available: (a) salaries accrued but unpaid total $250; (b) the $80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals $810 on the buildings and equipment; (d) interest accrued on the note payable totals $380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT & Daniel Specialty Company for $50 per month, and KT & Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals $80; (g) bad debts expense is $70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017.

Required:

1. 1. Complete the worksheet. (Round to the nearest dollar.)
2. 2. Prepare the company’s financial statements.
3. 3. Prepare (a) adjusting and (b) closing entries in the general journal.