ABC Corporation is a new company that buys and sells office supplies. Business began on January 1, 2016. Given on the first two tabs are ABC's 12/31/16 Unadjusted Trial Balance and a list of needed adjustments. 1. Make all 12 adjustments on the "Adjusting Journal Entries" tab. Remember to include a description under each journal entry. 2. Post the adjustments to the general ledger on the "12-31-16 T-Accounts" tab. You may have to add T-Accounts for new accounts. Link your T-Account entries to your Journal Entries. PLEASE NOTE THAT THE "BB" (BEGINNING BALANCES) FOR THE T-ACCOUNTS REPRESENT THE BALANCES AS OF 12/31/16. 3. Once the 12/31/16 T-Accounts are complete, prepare the Adjusted Trial Balance. There may be some accounts with zero dollars, and you may have to insert lines for new accounts. Link the Adjusted Trial Balance to your T-Accounts. 4. Use the Adjusted Trial Balance numbers to complete the Income Statement, Statement of Retained Earnings, and Balance Sheet. For purposes of the Income Statement, prepare using the multiple step format and assume that Rent Revenue, any Unrealized Holding Gains/Losses, Interest Expense, Interest Revenue, and any other Gains/Losses are NOT part of the major central ongoing operations of the company. For purposes of the Balance Sheet, be sure to prepare a classifed Balance Sheet. Link your financial statements to your Adjusted Trial Balance. If necessary, review financial statement preparation in Chapters 3 and 4 of your Intermediate Accounting textbook for a quick refresher. 5. When the Financial Statements are complete, make the closing entries on the "Closing Entries" tab. 6. When closing entries have been made, post the entries to the general ledger on the "Post-Close T-Accounts" tab. Make sure your adjusting journal entries are also on your Post-Close T-Accounts. They will not automatically flow from tab-to-tab. (Helpful hint: After you have completed and posted all of your adjusting entries, make a duplicate copy of your "12-31-16 T-Accounts" tab to replace the existing blank "Post-Close T Accounts" tab by right clicking on the completed "12-31-16 T-Accounts" tab, select Move or Copy, then click on "Create a Copy" and then place at the desired location. You can then delete the original "Post-Close T-Accounts" tab and rename the newly duplicated tab as your "Post-Close T-Accounts" tab). 7. The final step is the Post-Closing Trial Balance, which will use the ending balances from the Post-Close T-Accounts. 8. Double-check your work. Here are a few things to check for: -Adjusted Trial Balance: Make sure debit column and credit column total to the same figure at the bottom. -Net income from the income statement will flow through to the Statement of Retained Earnings. -Ending Retained Earnings from the Statement of Retained Earnings will flow through to the Balance Sheet. -The Post-Closing Trial Balance should not have any revenue, expense, gain, or loss (temporary) accounts. -Check figure 1: Income from operations = $395,874. -Check figure 2: Income before income taxes = $361,403. -Check figure 3: Total Current Assets at 12/31/16 = $1,343,664. -Check figure 4: Retained Earnings at 12/31/16 = $206,912. -Check figure 5: Total Stockholders' Equity at 12/31/16 = $467,912. -Check figure 6: Total Liabilities at 12/31/16 = $1,056,687. -Remember: Neatness matters in Financial Statements. Print or Print Preview before submitting to make sure your statements are neat. Otherwise, management may send back to you for revision! -Include your work at the bottom of each tab as needed. -Ask questions prior to the day/night before the due date. The due date is clearly indicated on the course schedule. -Utilize formulas and worksheet linkings in your financial statements to improve accuracy and save time in completing the assignment. -Please take advantage of Excel by using formulas to calculate groups of numbers (i.e. "Total Liabilities and Stockholders' Equity").Adjusting Journal Entries Account Titles Debits Credits Insurance Expense 2,250 Prepaid Insurance 2,250 Depreciation Expense 1,015 Accumulated Deprication-Building 115 Accumulated Deprication-Equipment 900 Unearned Rent Revenue 4,500 Rent Revenue 4,500 Wage Expense 5,000 Wages Payable 5,000 Interest Expense 300 Interest Payable 300 Inventory 100,000 Cost of Goods Sold 147,000 Purchases 247,000 Loss on Impairment 5,000 Patent 5,000 Cash 16,000 Stock 10,000 Capital 6,000 Cash 100,000 Common Stock 10,000 Paid in Capital 90,000 Interest Expense 30,271 Bond Payable 4,729 Interest Payable 35,000 Bad Debt Expense 75,000 Allowance on Doubtful Account 75,000 ABC Corporation Income Statement For the Year Ended December 31, 2016 ABC Corporation Statement of Retained Earnings For the Year Ended December 31, 2016 ABC Corporation Balance Sheet For the Year Ended December 31, 2016 Closing Entries Account Titles Debits Credits