S&S Supplies financial year is January to December and the following unadjusted trial balance and accompanying data were present for the year ended December 31, 2016.

S&S Supplies

Trial Balance

December 31, 2016

The following additional information is available at Dec 31, 2016:

1. Supplies on hand at Dec 31, 2016 amounted to $10,000.
2. $80,000 of the prepaid rent expired as at December 31, 2016.
3. The Furniture was purchased on January 1^st, 2016 and is being depreciated over five (5) years on the double declining method of deprecation down to a residue of $100,000.
4. The Leasehold Improvements have an estimated useful life of five (5) years and are being depreciated on the straight-line method down to a residue of $20,000.
5. Salaries earned by employees not yet paid amounted to $120,000 at December 31,2016.
6. Accrued interest expense due on the notes payable at December 31,2016 amounted to $5,250
7. A physical count of inventory at December 31, 2016, reveals $100,000 worth of inventory on hand.
8. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the companys management estimated that uncollectible accounts will be $30,000.

Required:

1. Prepare the necessary adjusting journal entries on December 31, 2016
2. Prepare the multi-step Income Statement for the year ended December 31, 2016
3. Prepare the Statement of Owners Equity for the year ended December 31, 2016
4. Prepare the Balance Sheet as at December 31, 2016