Scholes Shoes Ltd, is a retailer of children's school shoes and they have produced the following Unadjusted Trial Balance:

The problem to be resolved: Scholes Shoes Ltd, is a retailer of children's school shoes and they have produced the following Unadjusted Trial Balance: Scholes Shoes Ltd Unadjusted Trial Balance as at December 31, 2018 CR DR 1,500,000 1,200,000 100,000 400,000 90,000 1,600,000 10,000,000 3,000,000 1,200,000 240,000 900,000 A/C Name Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Building Accumulated depreciation - Building Fixtures and Fittings Accumulated depreciation Fixtures and Fittings Accounts payable Wages payable Interest payable Unearned Sales revenue Mortgage Scholes', Capital Scholes', Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Wages Expense Insurance Expense Depreciation Expense - Building Depreciation Expense - Fixtures and Fittings Supplies Expense Utilities Expense Bad Debt Expense Travelling Expense Interest Expense 200,000 2,300,000 6,500,000 150,000 7,305,000 65,000 130,000 3,000,000 870,000 70,000 180,000 65,000 25,000 20,545,000 20,545,000 The following additional information was made available at December 31, 2018 a) Insurance of $1,600,000 was paid on January 1, 2018 for the period January 2018 to April 2019. b) The company's building has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of $0. The fixtures and fittings are being depreciated over ten (10) years on the double-declining c) method of deprecation, down to a residue of $128,849. d) Wages earned by the company's employees and NOT paid at December 31, 2018 amounted to $130,000. e) A physical count of inventory at December 31, 2018, reveals $405,000 worth of inventory on hand. f) The aging of the accounts receivable schedule at December 31, 2018 indicated that the estimated uncollectible on accounts receivable is $120,000. g) Unearned sales revenue earned during December 2018, $100,000. h) Accrued interest payable on mortgage $120,000 Required: 1. Prepare the necessary adjusting entries on December 31, 2018 2. Prepare the company's Multiple-step Income Statement for the year ended December 31, 2018. 3. Prepare the company's Statement of Owner's Equity for the year ended December 31, 2018 4. Prepare the company's classified Balance Sheet at December 31, 2018 5. Prepare the closing entries 6. Prepare the post-closing trial balance