Prepare a multiple step income statement and a statement of changes to retained earnings for the year ended December 31, 20xx. Prepare a classified balance sheet for December 31, 20xx.

10,000 Maniacs Company
Trial Balance
December 31, 20xx
	Debits	Credits
Cash	$5
Accounts Receivable	$75
Allowance for Bad Debts		$8
Inventory	$25
Prepaid Expenses	$18
Supplies	$2
Equipment	$120
Building	$350
Accumulated Depreciation		$110
Land	$200
Investments in Stock held Long-Term	$55
Trademark & Logo	$3
Accounts Payable		$20
Salaries Payable		$65
Notes Payable (Due in 10 years)		$180
Common Stock		$20
Paid-In Capital in Excess of Par		$150
Retained Earnings		$80
Dividends Declared	$12
Sales		$880
Cost of Goods Sold	$235
Salaries Expense	$165
Research & Development Expense	$25
Marketing Expenses	$55
Depreciation Expense	$35
Administrative Expenses	$13
Taxes Expense	$40
Interest Expense	$22
Loss for Hurricane Damage	$95
Gain from sale of Investments		$37
Totals	$1,550	$1,550

LeBron James incorporates a new business, Phi Slamma Jamma, Inc., on December 1, 20xx. The company uses the accrual method of accounting. In addition to the accounts you see below, the company uses Consulting Revenues #400, Sales #401, Gains #405 and the Salaries Expense #500 accounts. Journalize each transaction. P2. Prepare an adjusted trial balance as of December 31, 20XX. You will need to set up ledgers (or t-accounts) for each account used.

Cash	#100	Unearned Revenue	#200
Accts Receivable	#105	Accounts Payable	#201
Allow 4Bad Debts	#106	Salaries Payable	#202
Supplies	#111	Interest Payable	#203
Prepaid Rent	#112	Notes Payable	#210
Equipment	#150	Common Stock	#300
Accum. Deprec.	#151	PIC, XOP Common	#301
		Retained Earnings	#320

Dec 1	LeBron invests $1,000,000 cash into Phi Slamma Jamma, Inc. for 100,000 shares of common stock that has a $1 par value and the right to vote. LeBron elects himself to the board of directors and hires Kyrie Irving to be his CEO.
Dec 1	PSJ, Inc. pays $96,000 to rent an office in downtown Cleveland for 12 months.
Dec 1	Acquired $50,000 of office computers by making a $20,000 cash down payment and will pay the balance in nine months.
Dec 1	Purchases inventory from Akron Supply Co. for $200,000 on account. The shipping terms were FOB Destination point. The credit terms are 1/15, N/30.
Dec 1	PSJ, Inc. signs a contract to provide consulting services to clients ratably over the next eight months. PSJ, Inc. collects $160,000 cash from the clients.
Dec 10	PSJ, Inc. sells $300,000 of merchandise to clients on account using the credit terms 2/30, N/90. The cost of the goods sold was $100,000.
Dec 15	Issued check #1 to Kyrie Irving for $50,000 and promised to pay him $30,000 in three months. Withhold $9,600 from Mr. Irvings earning for federal income taxes and .062 and .0145 for Social Security and Medicare taxes.
Dec 20	Issued check #2 to Akron Supply Co. for $175,000.
Dec 31	The board of directors declared a $.05 per share dividend to be paid on Jan 15, 2017.
Dec 31	PSJ, Inc. repurchased 10,000 shares of LeBrons stock for $20 per share.
Dec 31	The computers should last three years and have a salvage value of $0. PSJ, Inc. uses the straight-line method. Some of the prepaid rent has expired. Some of the service revenue work has been completed. Two percent of the inventory sold is expected to be returned. Four percent of the accounts receivable are estimated to be uncollectible.