I'm three weeks into my class and still struggling with wrapping my brain the concepts. Could someone assist me with problem 1?

There are two homework problems this week. The first is below and the second one is on the second tab at the bottom left of Below you will see an unadjusted trial balance run at month end followed by information needed to make adjusting entries. Baltimore Glass Company Unadjusted Trial Balance January 31, 2017 Acct. No. Account Title 101 Cash 110 Accounts Receivable 120 Merchandise Inventory 125 Supplies on Hand 130 Prepaid Insurance 131 Prepaid Rent 150 Equipment 160 Accumulated Depreciation 202 Accounts Payable 210 Salaries Payable 215 Interest Payable 220 Current Portion of Long Term Debt 240 Long Term Debt 301 Capital Stock 302 Retained Earnings, 12/31/16 401 Sales 510 Cost of Goods Sold 520 Advertising Expense 530 Sales Salaries Expense 531 Sales Commission Expense 532 Supplies Expense 540 Office Salaries Expense 550 Utilities Expense 555 Insurance Expense 558 Rent Expense 560 Professional Fees Expense 570 Depreciation Expense 580 Interest Expense Debit 39,512 182,610 573,987 3,252 1,000 7,500 270,000 Credit 90,000 110,587 12,000 120,000 220,000 211,144 348,080 1,000 18,600 12,950 1,400 1,111,811 1,111,811 Adjusting items and notes: 1. The company uses a calendar year. 2. Insurance was prepaid at the beginning of the year by paying $60,000 for a 12 month policy. 3. It is estimated that supplies on hand equal $2,000 at month end. 4. The rent is prepaid quarterly and $7,500 covered the first quarter of 2017. 5. Equipment was all purchased at one time and has a life of 10 years with no salvage value. The equipment was 40 months ol 6. At month end sales commissions of $3,000 were earned but unpaid. The company records sales commission liability as a sa 7. The interest rate on long term debt is 6% per year. Interest will actually be paid at the end of each calendar quarter. (don't fo 8. It is estimated that electricity usage equaled $800 during January and the company expects to be billed in early February. B 9. The company has a long history of cost of goods sold and 70% is a reasonable estimate to use for monthly financial statemen 10. The company considers sales salaries, commissions, supplies, and advertising to be selling expense and all other expenses t Do the following requirements below. Create proper headings for each statement. 1. Record adjusting journal entries from information above. You will need to calculate cost of goods sold to adjust inventory. D 2. Prepare an adjusted trial balance including the adjusting entries made 3. Prepare a multi-step income statement. Consider depreciation to be a selling and administrative expense. Include a detailed 4. Prepare a statement of retained earnings 5. Prepare a classified balance sheet 6. Prepare closing journal entries including an entry to adjust the inventory balance. Prepare entries to income summary and r Account # Account Title Baltimore Glass Company Adjusted Trial Balance January 31, 2017 debit credit Acct. No. Account Title 101 Cash 110 Accounts Receivable 120 Merchandise Inventory 125 Supplies on Hand 130 Prepaid Insurance 131 Prepaid Rent 150 Equipment 160 Accumulated Depreciation 202 Accounts Payable 210 Salaries Payable 215 Interest Payable 220 Current Portion of Long Term Debt 240 Long Term Debt 301 Capital Stock 302 Retained Earnings, 12/31/16 401 Sales 510 Cost of Goods Sold 520 Advertising Expense 530 Sales Salaries Expense 531 Sales Commission Expense 532 Supplies Expense 540 Office Salaries Expense 550 Utilities Expense 555 Insurance Expense 558 Rent Expense 560 Professional Fees Expense 570 Depreciation Expense 580 Interest Expense Debit Credit - Baltimore Glass Company Income Statement For the Month Ended 1/31/2017 - Baltimore Glass Company Statement of Retained Earnings For the Month Ended 1/31/2017 Baltimore Glass Company Balance Sheet January 31, 2017 Note on retained earnings - must be updated number from retained earnings statement Closing Entries zero out income statement accounts for new year he second tab at the bottom left of the screen eded to make adjusting entries. The equipment was 40 months old at the end of October. s sales commission liability as a salary liability. d of each calendar quarter. (don't forget the current portion of debt) ts to be billed in early February. Bills for utilities are entered into accounts payable. use for monthly financial statements. g expense and all other expenses to be administrative. f goods sold to adjust inventory. Draw T-accounts on your draft to help figure this out. trative expense. Include a detailed cost of goods sold section including purchases and goods available for sale. e entries to income summary and retained earnings even though this is a month end only. Compute the ending inventory using LIFO for both the periodic and the perpetual methods below: units 1-Jan Beginning inventory 14-Jan Bought 5-Feb Sold 22-Feb Bought 7-Mar Sold 15-Mar Sold 5-Apr Bought 10-Apr Sold 12-Apr Sold 22-Apr Sold 4-May Sold 10-May Bought 25-May Sold price 3,500 $ 1,500 $ 1,000 2,000 $ 1,500 2,000 1,000 $ 800 800 500 600 2,000 $ 500 3.00 3.15 3.20 3.25 3.30 LIFO Periodic Inventory (scroll down to see Perpetual input area) Purchased Date units cost total 1-Jan units cost Sold total Balance units cost total 3500 $ 3.00 $ 10,500.00 LIFO Perpetual Inventory Date units 1-Jan Purchased cost total units cost Sold total units Balance cost total 3500 $ 3.00 $ 10,500.00