Harper Maize Air Conditioner Company presented the following unadjusted trail for the financial year ended December 31st, 2016.

Harper Maize Air Conditioner Company Trial Balance as at December 31, 2016

Account DR CR

Cash 240,000 Accounts Receivable 360,000 Merchandise Inventory 295,000 Store Supplies 120,000 Prepaid Electricity Expense 65,000 Building and Equipment 800,000 Accumulated Depreciation Building and Equipment 237,000 Accounts Payable 310,000 Interest Expense Payable Traveling Expense Payable Unearned Sales Revenue 102,000 Note Payable-Long Term 210,000 Harper Maize, Capital 1,000,000 Harper Maize, Withdrawal 105,000 Sales Revenue Earned 1,416,600 Sales Discount 15,000 Sales Returns and Allowances 24,500 Cost of Goods Sold 645,000 Salaries Expense 245,000 Telephone Expense 25,000 Depreciation Expense Building and Equipment Electricity Expense 155,400 Store Supplies Expense Insurance Expense 85,000 Bad Debt Expense 35,300 Travelling Expense 45,000 Interest Expense 15,400 ________ Total 3,275,600 3,275,600 The following additional information was made available at December 31, 2016

a) Unearned sales revenue, still not earned at December 31, 2016 amounted $22,000.

b) The prepaid electricity includes $15,000 which expired during the year.

c) The Building and Equipment 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 $10,000.

d) Store supplies consumed during the year amounted to $45,200.

e) Interest expenses not paid as at December 31, 2016 amounted to $4,500

f) Accrued travelling expense amounted to $2,300 at December 31, 2016.

g) A physical count of inventory at December 31, 2016, reveals $315,000 worth of inventory on hand.

Required:

1. Prepare the necessary adjusting entries on December 31, 2016

2.Prepare the adjusted trial balance for year ended december 30,2016

3. Prepare the companys multiple-step income statement for the year ended December 31, 2016. (8 Marks)

4. Prepare the companys statement of owners equity for the year ended December 31, 2016 (3 Marks)

5. Prepare the companys classified balance sheet at December 31, 2016 (12 Marks)