Help! Need to create an Adjusted Trial Balance and REALLY don't understand adjustments.

Best Bicycles Inc.
December 2015 Transactions
Part I
Date		Description
1-Dec		Declared a cash dividend of $400 to be paid at the end of the month.
2-Dec		Purchased 25 bicycles for $18,750 with terms 2/10, net/30. (Best Bicycles uses the perpetual inventory method and records purchases at gross, not net of discount).
4-Dec		Issued (sold) 500 additional shares of $2 par common stock for $10,000 cash.
5-Dec		Sold a bicycle for $3,200 cash. Cost of the bicycle was $1,000.
8-Dec		Purchased supplies on account for $225.
10-Dec		Paid vendor for the bicycles purchased on December 2.
14-Dec		Paid for TV advertisement that ran during the first week of December in the amount of $1,100.
15-Dec		Paid salaries in the amount of $800 for salaries earned during the first two weeks of December.
15-Dec		Sold equipment with an original cost of $1,200 and accumulated depreciation of $900 for $400.
16-Dec		Collected accounts recevable in the amount of 900.
18-Dec		Paid December interest incurred on note payable in the amount of $75.
20-Dec		Sold a bicycle for $4,700. Received $2,500 in cash with the balance due in 30 days. The cost of this bicycle was $1,900.
28-Dec		Paid $350 to repair equipment.
31-Dec		Made a $1,500 principal payment on the note payable.
31-Dec		Paid cash dividend declared on December 1.
Part II
Date		Description
31-Dec		Salaries earned as of December 31 in the amount of $920 will not be paid until January 2 of the following year.
31-Dec		December depreciation on equipment was $150.
31-Dec		Took a physical inventory and found the cost of the remaining unsold inventory was $38,970. (Assume any adjustment amount is immatrial.]
31-Dec		2015 income taxes of $350 will not be paid until February 1 of the following year.
31-Dec		Insurance was paid in advance at the beginning of the quarter. December was the final month of insurance coverage.
31-Dec		A count of remaining supplies indicated supplies on hand at year end of $155.

Best Bicycle, Inc.
Trial Balance
December 31, 2015
		Dr		Cr
Cash		10,575.00
Accounts receivable		2,425.00
Supplies		155.00
Prepaid insurance		-
Inventory		38,970.00
Equipment		4,800.00
Accumulated depr - equipment				2,200.00
Accounts payable				6,189.00
Salaries payable				920.00
Dividends payable				25.00
Income taxes payable				350.00
Note payable				8,500.00
Common Stock				2,000.00
Additional Paid in capital				18,000.00
Retained earnings				10,286.00
Dividends		400.00
Bicycle sales revenue				137,600.00
Cost of goods sold		93,340.00
Advertising expense		17,600.00
Salaries expense		12,720.00
Supplies expense		460.00
Repairs expense		625.00
Interest expense		1,025.00
Insurance expense		1,200.00
Depreciation expense		1,525.00
Income taxes expense		350.00
Gain on sale				100.00
Totals
		186,170.00		186,170.00