Problem 5-6A

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		$ 69,080
Accounts Receivable		82,720
Inventory		154,000
Land		202,400
Buildings		440,000
Accumulated DepreciationBuildings				$ 132,000
Equipment		183,700
Accumulated DepreciationEquipment				89,100
Notes Payable				120,340
Accounts Payable				38,500
Common Stock				352,000
Retained Earnings				147,840
Dividends		22,000
Sales Revenue				2,028,620
Sales Discounts		13,200
Cost of Goods Sold		1,561,780
Salaries and Wages Expense		112,860
Utilities Expense		25,080
Maintenance and Repairs Expense		19,580
Advertising Expense		11,440
Insurance Expense		10,560
		$2,908,400		$2,908,400

Adjustment data:

1.		Depreciation is $17,600 on buildings and $15,400 on equipment. (Both are operating expenses.)
2.		Interest of $9,900 is due and unpaid on notes payable at December 31.
3.		Income tax due and unpaid at December 31 is $52,800.

Other data: $33,000 of the notes payable are payable next year.

Journalize the adjusting entries. Create T-accounts for all accounts used in part a. Enter the trial balance amounts into the T-accounts and post the adjusting entries. Prepare an adjusted trial balance. Prepare a multiple-step income statement for the year ended December 31, 2017. Prepare a retained earnings statement for the year ended December 31, 2017. (List items that increase retained earnings first.) Prepare a classified balance sheet at December 31, 2017. (List current assets in order of liquidity and property, plant and equipment in order of land, buildings and equipment.)