Question

Mackenzie Inc. uses a perpetual inventory system and hasprepared the following adjusted trial balance on December 31,2016:

Mackenzie Inc.

ADJUSTED TRIAL BALANCE

December 31, 2016

	ACCOUNTTITLE	DEBIT	CREDIT
1	Cash	2,100.00
2	Accounts Receivable	2,700.00
3	Allowance for Doubtful Accounts		250.00
4	Inventory	6,700.00
5	Prepaid Insurance	800.00
6	Land	5,000.00
7	Buildings and Equipment	34,700.00
8	Accumulated Depreciation		14,700.00
9	Accounts Payable		3,500.00
10	Salaries Payable		440.00
11	Unearned Rent		360.00
12	Income Taxes Payable		2,750.00
13	Note Payable		4,600.00
14	Interest Payable		900.00
15	Common Stock		9,900.00
16	Retained Earnings		7,300.00
17	Dividends	1,400.00
18	Income Summary
19	Sales Revenue		33,770.00
20	Rent Revenue		1,370.00
21	Cost of Goods Sold	15,290.00
22	Selling Expenses	4,900.00
23	Administrative Expenses	2,600.00
24	Interest Expense	900.00
25	Income Tax Expense	2,750.00
26	Totals	79,840.00	79,840.00

	For classification purposes:
	Note payable is due July 1,2020
	Interest payable is due July 1,2020

Required:

Prepare in proper form for 2016the company’s:

1. income statement

2. retained earningsstatement

3. ending balancesheet

4. closing entries in its general journal

Additional Information for labeling:

CHARTOF ACCOUNTS

Mackenzie Inc.

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
122	Allowance for DoubtfulAccounts
130	Inventory
131	Prepaid Insurance
180	Land
181	Buildings and Equipment
182	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
230	Salaries Payable
232	Unearned Rent
270	Income Taxes Payable
271	Note Payable
272	Interest Payable

	EQUITY
311	Common Stock
331	Retained Earnings
351	Dividends
391	Income Summary

	REVENUE
411	Sales Revenue
421	Rent Revenue

	EXPENSES
510	Cost of Goods Sold
625	Selling Expenses
699	Administrative Expenses
711	Interest Expense
910	Income Tax Expense