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Jefferson Jerome is interested in purchasing “Art Specialists, Inc.”, an auction house. The company receives the right to sell art, but not to purchase the art themselves, for a 5% commission. Art Specialists rents office space and holds its auctions at local hotels.

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Art Specialists, Inc.

Unadjusted Trial Balance

December 31, 2009

Cash

$ 65,000.00

Accounts receivable

$ 36,000.00

Supplies

$ 8,000.00

Equipment

$ 53,000.00

Accumulated Depreciation

$ 14,500.00

Accounts payable

$ 5,600.00

Dividends

$ 50,000.00

Capital stock

$ 25,000.00

Retained earnings

$ 84,900.00

Commission income

$ 250,000.00

Rent Expense

$ 20,000.00

Wages Expense

$ 70,000.00

Auction Expenses

$ 56,000.00

Depreciation Expenses

$ 7,000.00

Membership Expenses

$ 6,000.00

Supplies Expense

$ 9,000.00

TOTAL

$ 380,000.00

$ 380,000.00

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