Accounts payable ....................................................................................

$12,750

Accounts receivable ..............................................................................

2,600

Accumulated depreciation; office equipment ......................................

12,000

Additional paid-in capital (common stock) ..............................................

7,000

Bonds payable (due December 31, 2012) .................................................

22,500

Cash ...........................................................................................................

15,200

Common stock (1,800 shares, $10 par value) .........................................

18,000

Cost of goods sold ......................................................................................

100,575

Deferred income taxes ...............................................................................

5,750

Depreciation expense; office equipment ............................................

2,750

Dividends declared ......................................................................................

5,000

Income tax expense ......................................................................................

8,190

Insurance expense ....................................................................................

900

Land ............................................................................................................

37,500

Merchandise inventory .........................................................................

17,500

Notes payable (due December 31, 2008) ..............................................

2,500

Office equipment ..............................................................................................

41,000

Office supplies .........................................................................................

900

Office supplies expense ...........................................................................

520

Preferred stock (250 shares, $20 par value) ..........................................

6,000

Premium on bonds payable ....................................................................................

1,750

Prepaid rent ...........................................................................................

1,800

Rent expense .......................................................................................

6,100

Retained earnings (January 2007) .............................................................

21,050

Salaries expense .....................................................................................

68,095

Sales .....................................................................................................

226,000

Sales returns and allowances ................................................................

2,500

Sales taxes payable ........................................................................................

8,200

Treasury stock (200 common shares at cost) ................................................

2,250

Utilities expense ................................................................................

4,120