VALLEY PUBLISHING COMPANY Working Trial Balance - Operating Accounts 12-31-81 Working Paper Ref.

Per Audit 12-31-80 470,501 175,555 180,106 256,170 1,082,332 Balances Per Books 12-31-81 526,901 198,610 203,460 341,206 1,270,177

Accounts Revenue Advertising Revenue - Local Display Advertising Revenue - National Display Advertising Revenue - Classified Publication Sales Total Revenue

Operating Expenses Salaries Advertising commissions Correspondents' fees Newspaper services Photo and engraving Newsprint and ink Repairs and maintanance Supplies Circulation and delivery Rent Depreciation Property taxes Insurance Utilities Payroll taxes Professional fees Bad debt expense Miscellaneous expense Total Operating Expenses

429,648 67,380 8,840 18,650 6,980 149,593 12,075 9,130 5,880 18,000 50,662 7,193 3,450 24,100 24,767 18,870 7,730 9,886 872,834

451,090 77,276 9,350 21,380 8,740 273,895 30,650 9,740 6,470 42,000 55,715 7,445 4,760 28,540 25,717 22,350 10,900 22,780 1,108,798 161,379 6,280 3,757 25,000 14,570 393 160,986 60,000 100,986

Net Income from Operations Other incomes and (expenses) Income from investments Miscelaaneous income Interest expense Gain (loss) on disposal of assets Net Other Net income before taxes Estimated federal income tax Net income after taxes Footing checked Checked Balances to Ledger

209,498 13,200 1,846 30,000 1,800 13,154 196,344 68,722 127,622

Adjustment Journal Entries Supplies Expense Repair and Maintanance Expense Petty Cash

371 480 851

T/B 2

Adjustments Dr. Cr.

480 371

VALLEY PUBLISHING COMPANY Working Trial Balance - Balance Sheets Accounts 12-31-81 Working Paper Ref. Per Audit 12-31-80 41,965 10,000 1,820 96,480 (8,100) Balances Per Books 12-31-81 92,772 30,000 2,000 103,640 (10,530)

T/B 1

Adjustments Dr.

Accounts Assets Cash - Central State Bank Cash - Albany National Bank Pety Cash Accounts Receivable Allowances for Bad Debts Income Tax Refund Receivable - Insurance Claim Newsprint Inventory Prepaid Insurance Prepaid Rent Investments - General Investments - Savings Land and Building Under Capital Lease Accum. Depreciation - Capital Lease Furniture and Fixtures Accum. Depr. - Furniture and Fixtures Printing Equipment Accum. Depr. - Printing Equipment Deferred Income Taxes

1,230

84,016 1,360 12,000 151,380

108,196 17,400 65,950 210,000

60,850 (24,830) 894,840 (421,090) 900,691

68,850 (31,045) 1,084,840 (470,590) 1,271,483 121,675 16,273 10,552 7,445

Liabilities : Vouchers Payable Accrued Payroll - Net Accrued Payroll Taxes Accrued Property Taxes Accrued Interest Payable Dividends Payable Current Portion of L/T Debt Notes Payable Obligation Under Capital Lease Deferred Gain on Sale and Lease Back Federal Income Taxes Payable Deferred Income Taxes Equity Common Stock Paid-in Capital Retained Earnings Deferred Loss on Equity Securities 300,000 76,930 330,000 204,552 60,380 5,844 7,193 60,000 250,000 475,000

12,722

5,000

Current Net Income Footing checked Checked Balances to Ledger

127,622 900,691

100,986 1,271,483

T/B 1

Adjustments Cr. 1,230 851