Hilary K, INC.
Adjusted Trial Balance
December 31, 2016
					Dr.		Cr.
Cash					11,700
Accounts Receivable					37,000
Allowance for Doubtful Accounts							5,000
Merchandise Inventory (beginning)					86,000
Prepaid Insurance					16,800
Land					75,000
Office Equipment					46,000
Accumulated Depreciation-Office Equipment							16,865
Buildings					350,000
Accumulated Depreciation-Buildings							48,125
Timber					20,000
Accumulated Depletion-Timber							4,000
Patent					12,500
Accounts Payable							34,000
Salaries Payable							6,000
Interest Payable							1,500
Unearned Rent							2,000
Notes Payable							500,000
Capital, Paul Kason							14,915
Paul Kason, Drawings					3,000
Sales							262,000
Sales Returns and Allowances					2,120
Sales Discounts					4,240
Purchases					127,000
Purchases Returns and Allowances							3,500
Purchase Discounts							4,000
Freight-in					4,200
Bad Debt Expense					3,180
Insurance Expense					1,400
Interest Expense					30,000
Repairs and Maintenance Expense					6,700
Salaries Expense					36,000
Advertising Expense					2,650
Depreciation Expense					11,815
Depletion Expense					3,000
Amortization Expense					4,000
Utilities Expense					8,400
Rent Revenue							800
					902,705		902,705
								-
Other data:
(1) Inventory on hand at December 31, 2016 is $112,000 (i.e., ending inventory).
(2) Bad Debt Expense, Insurance Expense, Repairs and Maintenance Expense, Depletion Expense, Amortization Expense, and Utilities Expense are 100% administrative.
(3) Advertising Expense is 100% selling.
(4) Depreciation Expense and Salaries Expense are 60% administrative and 40% selling.
(5) $100,000 of the Notes Payable are payable next year.
(6) Hilary contributed $10,000 to the business in 2016

Prepare a classified balance sheet & multi step income statement using the provided information.