Anthony Kim
106628665
Bus 210
Project One

1) Journalize the adjusting entry Depreciation Expense 22,000 Accumulated Depreciation - Equipment 10,000 Accumulated Depreciation - Buildings 12,000
Interest Expense 9,000 Interest Payable 9,000

2) Income Statement
Elker Fashions Incorporated
Income Statement
For the year ended Dec 31, 2008

Revenue Sales 859,700
Expense
Interest Payable 9,000 Depreciation – Equipment 10,000 Depreciation – Buildings 12,000 Purchases 703,600 Freight-In 12,900 Salaries Expense 700,700 Utilities Expense 11,400 Repair Expense 5,900 Gas and Oil Expense 7,600 Insurance Expense 3,500 Total Expense 846,000
Net Income 13,100

Elker Fashions Incorporated
Retained Earnings Statement
For the year ended Dec 31, 2008
Retained Earnings 67,800 Add: Net Income 13,100 80,900 Less: Dividends 11,000
Retained Earnings 69,900

Elker Fashions Incorporated
Balance Sheet
For the year ended Dec 31, 2008
Assets
Current Assets Cash 26,500 Accounts Receivable 42,200 Merchandise Inventory 52,500
Property, Plants and Equipment Land 94,000 Buildings 183,000 Equipment 84,500 Less: Depreciation 98,800 Accumulated Depreciation 22,000
Total Assets 361,900
Liabilities and Stockholders’ Equity
Liabilities
Interest Payable 9,000 Notes Payable 40,000 Accounts Payable 37,500 Total Liabilities 86,500
Stockholders’ Equity Common Stock 205,500 Retained Earnings 69,900
Total Stockholders’ Equity 275,900
Total Liabilities and Stockholders’ Equity 361,900

3) General Journal Entry

Date Account Titles and Explanation