The following unadjusted trial balance was extracted from the books of Carol’s Trading Company at December 31, 2017, the end of the company’s fiscal year. The company is owned by Carol Williams who trades in the business of buying and selling household consumables.

Carol’s Trading Company

Trial Balance as at December 31, 2017

A/C Name	DR $	CR $
Cash	250,000
Accounts Receivable	340,000
Allowance for Bad Debts		25,000
Merchandise Inventory	210,000
Store Supplies	120,000
Prepaid Insurance	156,000
Office Furniture	1,200,000
Accumulated Depreciation –Office Furniture		360,000
Computer Equipment	600,000
Accumulated Depreciation –Computer Equipment
Accounts Payable		345,000
Wages Payable
Interest Payable
Notes Payable, Long Term		210,000
Unearned Sales Revenue		265,000
Carol Williams, Capital		855,200
Carol Williams, Withdrawal	190,000
Sales Revenue Earned		2,100,000
Sales Discount	15,000
Sales Return and Allowances	27,000
Cost of Goods Sold	490,000
Wages Expense	137,000
Insurance Expense	78,000
Depreciation Expense –Office Furniture
Depreciation Expense –Computer Equipment
Store Supplies Expense
Utilities Expense	119,000
Bad Debt Expense
Rent Expense	205,000
Interest Expense	23,200	__________
Total	4,160,200	4,160,200

The following additional information was made available at December 31, 2017:

Store supplies on hand at December 31, 2017 amounted to $42,000.

Insurance of $156,000 was paid on June 1, 2017 for the period June 2017 to March 2018.

The office furniture has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of $0.

The computer equipment was acquired on April 1, 2017 and is being depreciated over five (5) years on the double-declining method of deprecation, down to a residue of $54,432.

Wages earned by the company’s employees and not paid at December 31, 2017 amounted to $33,500.

Accrued interest expense amounted to $2,850 at December 31, 2017.

A physical count of inventory at December 31, 2017, reveals $280,300 worth of inventory on hand.

At December 31, 2017, $195,000 of the previously unearned sales revenue had been earned.

The aging of the accounts receivable schedule at December 31, 2017 indicated that the estimated uncollectible on accounts receivable is $34,000.

Other data:

$110,000 of the notes payable is due for payment on April 31, 2018

Required:

Prepare the necessary adjusting entries on December 31, 2017.

Prepare the company’s multiple-step income statement for the year ended December 31, 2017.

Prepare the company’s statement of owner’s equity for the year ended December 31, 2017.

Prepare the company’s classified balance sheet at December 31, 2017.