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Dawson O’Connor is the owner of Miller Island Sales a distributor of fishing supplies The following is the balance sheet of the company as of December 31 2015 Dawson keeps very few records and has

Dawson O’Connor is the owner of Miller Island Sales, a distributor of fishing supplies. The following is the balance sheet of the company as of December 31, 2015: Dawson keeps very few records and has asked you to help him prepare the 2016 financial statements for Miller Island Sales. An analysis of the 2016 cash transactions recorded in the company’s checkbook indicates deposits and checks as follows: Total deposits: $173,200; all were collections from customers except for a long-term $10,000 bank loan. Checks written: $169,800 summarized as follows: Inventory ................. $123,100 Salaries ................. 4,250 Rent ................... 4,800 Equipment ............... 4,000 Note payments (including interest of $650) .. 2,650 Office expense ............. 3,400 Auto expense ............... 4,100 Withdrawals .............. 23,500 $169,800 Other information about the company is as follows: 1. Accounts receivable at December 31, 2016: $ 9,200. 2. Accounts payable at December 31: 3. Salaries payable at December 31, 2016, $1,800. 4. Equipment is depreciated by the straight-line method over a 10-year life. The equipment purchased in 2016 was acquired on July 1. All of the equipment will have zero salvage value at the end of its useful life. 5. Interest payable at December 31, 2016: $140. 6. The company uses a periodic inventory system. Inventory at December 31, 2016: $17,400. Required: 1. Prepare a workshe

May 12 2020 View more View Less

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