Noswetta Company (Homework) The accounts listed below comprise the general ledger of Noswetta Compan

Noswetta Company (Homework) The accounts listed below comprise the general ledger of Noswetta Company at December 31, 2018. Account balances are before the end-of-period adjusting entries. Accounts having a zero balance are activated during the adjustment process. 172,000 180,000 1,000 100,000 4,000 12,000 500,000 95,000 70,000 Cash…… ………………………………… Accounts receivable. Allowance for doubtful accounts Inventory Office supplies……. Unexpired insurance………. Machinery.. Accumulated depreciation Machinery…. Patents ………. Accounts payable (suppliers……… Note payable…….. Salaries payable…… Rent payable……………. Interest payable… Common stock, $10 par value…… Paid-in capital in excess of par value….. Retained earnings (Bal.,1/1/18). Treasury stock (2,000 shares, at cost)… 40,000 20,000 320,000 400,000 308,000 50,000 Sales…. 960,000 40,000 345,000 570,000 66,000 5,000 Sales returns.. Cost of Goods Sold…….. Salaries expense ………. Rent expense… Interest expense………….. Insurance expense.. Office supplies expense….. Depreciation expense…………… Bad Debts expense…………………. Patent amortization expense…… Misc. operating expenses… 30,000 2,145,000 2,145,000 Adjustment data: 1. Accrued salaries at December 31 amount to $3,000. i Rent is paid after each month at the rate of $6,000 per month. The rent for December is due on January 5, 2019. ri The note payable ($20,000) is due with interest on April 9, 2019. Accrued interest on this note at December 31 is $1,000. The balance in the unexpired insurance account ($12,000) is the cost of a three- year insurance policy that went into effect on July 1, 2018. Office supplies on hand at December 31 amount to $500. é An aging of accounts receivable at December 31 indicates that approximately 5% of accounts receivable will prove to be uncollectible. Note: This means that the Allowance for Doubtful Accounts should have a balance of $9,000 on the December 31, 2018 balance sheet. However, the expense reported on the income statement will be only $8,000. Be sure to understand why this is the case. Depreciation on machinery for 2018 is $40,500. Patents are being amortized at the rate of $7,000 per year. Requirements: (1) Prepare the necessary adjusting entries in general journal form. (2) Prepare an income statement for 2018 (ignore income taxes). Prepare a statement of retained earnings for 2018. No dividends were declared in 2018. Prepare a classified balance sheet at December 31, 2018. Use the following categories for this balance sheet: Current assets, Non-current assets, Current liabilities, and Stockholders' equity.

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