Presented below is the Trial Balance for Stabler Company Limited on December 31, 2016: STABLER COMPANY LIMITED Trial Balance December 31, 2016 Dr. Cr. Cash Accounts receivable Prepaid rent Supplies Machine $8,000 5,800 2,100 1,200 20,000 Accumulated depreciation-Machinery $1,000 Accounts payable Notes payable Retained earnings 7,000 10,000 9,000 Common stock Dividends Sales revenue Advertising expense Utilities expense Rent expense 9,000 3,200 45,000 2,100 2,000 4,000 Repair expense 3,000 Salaries & wages expense 12,000 Cost of goods sold 17,000 Sales returns and allowances 600 Totals $81.000 $81.000 Page 2 QUESTION 1 (Continued) Additional information: a) Supplies used during the year totaled $200. b) Depreciation expense for the year was $2,000 on the machinery. c) Interest outstanding on the note payable was $1,000. d) Salaries accrued for the period was $1,000. Required: a) Prepare the adjusting entries in journal form. b) Prepare a multiple step income statement in proper format. c) Prepare a statement of retained earnings as of December 31, 2016. [8 Marks] [13 Marks] [3 Marks] d) Prepare a classified balance sheet as at December 31, 2016 in good format. [9 Marks] e) Explain the differences between cash basis and accrual basis of accounting. [2 Marks]