P5-6A The trial balance of Peoples Choice Wholesale Company contained the following accounts shown at December 31, the end of the companys fiscal year.

PEOPLES CHOICE WHOLESALE COMPANY Trial Balance December 31, 2017
		Debit		Credit
Cash		$ 31,400
Accounts Receivable		37,600
Inventory		70,000
Land		92,000
Buildings		200,000
Accumulated DepreciationBuildings				$ 60,000
Equipment		83,500
Accumulated DepreciationEquipment				40,500
Notes Payable				54,700
Accounts Payable				17,500
Common Stock				160,000
Retained Earnings				67,200
Dividends		10,000
Sales Revenue				922,100
Sales Discounts		6,000
Cost of Goods Sold		709,900
Salaries and Wages Expense		51,300
Utilities Expense		11,400
Maintenance and Repairs Expense		8,900
Advertising Expense		5,200
Insurance Expense		4,800
		$1,322,000		$1,322,000

Adjustment data: 1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are operating expenses.) 2. Interest of $4,500 is due and unpaid on notes payable at December 31. 3. Income tax due and unpaid at December 31 is $24,000. Other data: $15,000 of the notes payable are payable next year.

Instructions (a) Journalize the adjusting entries. (b) Create T-accounts for all accounts used in part (a). Enter the trial balance amounts into the T-accounts and post the adjusting entries. (c) Prepare an adjusted trial balance. (d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2017.