from the books of Columbus Ltd at December 31, the end of the companys financial year. The company is owned by John Columbus and is in the business of buying and farming supplies.

The following additional information is available at December 31, 2018:

1. Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019.
2. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $100,000.
3. The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000.
4. Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018.
5. A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand.
6. At December 31, $140,000 of the previously unearned sales revenue had been earned.
7. The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000.

REQUIRED:

1. Prepare the necessary adjusting journal entries on December 31. [Narrations are not required]
2. Prepare Columbus Ltd multiple-step income statement for the year ended December 31, 2018.
3. Prepare Columbus Ltd statement of owners equity for the year ended December 31, 2018.
4. Prepare Columbus Ltd classified balance sheet at December 31, 2018.
5. Prepare the closing entries
6. Prepare the post-closing trial balance