Required Questions Only/Please Show a-e in proper journal form, using the spreadsheet below, and the additional information section only:

a. Prepare in journal form, any required correcting entries

b. Prepare in journal form, all end-of-the period adjusting entries

c. Prepare a December adjusted trial balance

d. Prepare a classified balance sheet for the year ended December 31, 2014 (remember balance updates)

e. Prepare in journal form, the closing entries for the year ended December 31, 2014

Flip Company's December 31, 2014 trial balance is as follows:

Flip Corporation
Trial Balance
December 31, 2014
Account	Debit	Credit
Cash	$43,500
Accounts Receivable	54,500
Allowance for Doubtful Accounts		500
Notes Receivable	30,000
Merchandise Inventory	55,000
Land	20,500
Building	150,000
Accumulated Depreciation, Building		$15,000
Equipment	50,000
Accumulated Depreciation, Equipment		21,000
Goodwill	26,000
Accounts Payable		24,500
Long Term Notes Payable		75,000
Common Stock, $10 par, 2,000 shares authorized & outstanding		20,000
Retained Earnings		147,000
Sales Revenue		700,000
Salaries Expense	150,000
Utilities Expense	3,500
Cost of Goods Sold	350,000
Administrative Expenses	55,000
Sales Expenses	15,000	_______
Totals	$1,003,000	$1,003,000

Flip is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.

Additional Information to help complete the above Journal Entries required:

a. Notes Receivable is a 3-months, 6% note accepted on December 1, 2014.

b. Long Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2014. Interest is payable annually.

c. Building is depreciated at 3% per year. There is no salvage value.

d. Equipment is depreciated at 15% year. There is no salvage value.

e. Flip discovered, on December 30^th, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.

f. The year-end physical count for Merchandise Inventory reflected a value of $52,500. Any difference in value is treated as shrinkage, and is included as part of Cost of Goods Sold.

g. Salaries for the last half of December, payable in January, amount to $6,500.

h. Flip determined that the balance in the Allowance for Doubtful Accounts should be $2,650 after an aging of A/R schedule was completed.