The accounts for CALS Inc. as of Dec. 31, 2010, Inc. are shown below:

Cash	25,000
A/R	41,500
Allow. For Bad Debts	250
Inventory	40,700
Long-Term Investments	15,000
Equipment	190,000
Accum. Dep. Equip.	51,000
A/P	31,000
LT Note Payable	70,000
Wages Payable	8,000
Utilities Payable	7,000
Property Taxes Payable	6,500
Capital Stock, $10 par	40,000
Retained Earnings	52,100
Sales	322,000
Sales Returns	7,500
Sales Discounts	4,500
Cost of Goods Sold	206,250
Selling Expenses	45,000
Office Expenses	6,000
Insurance Expense	3,000
Supplies Expense	5,000
Taxes Real Estate and Payroll	7,200
Interest Revenue	12,000
Miscellaneous Expense	3,200

Additional information for 2010 adjusting entries:

a) CALS uses a perpetual inventory system

b) An aging of A/R calculates uncollectible accounts of $1000.

c) Equipment is depreciated at 10% per year, no depreciation has been recorded for 2010 to date.

d) A recheck of the inventory count revealed that goods costing $4000 were excluded from ending inventory; and a book to physical adjustment was NOT made. The goods in question were shipped on January 3, 2011. A related receivable for $6400 was also mistakenly recorded in 2010.

e) 2010 interest on the note payable has not been accrued. The 5 year note was issued on March 1, 2010, and has a simple interest rate of 12%. Principal and interest are due upon maturity.

f) The balance in Insurance Expense represents $3,000 that was paid for a 1-year policy on October 1. The policy went into effect on October 1.

g) Dividends totaling $7,800 were declared on December 25. The dividends will not be paid until January 15, 2011. No entry was made.

h) Accrued interest on long-term investments is $240.

i) Income taxes are estimated to be 20% of the income before income taxes.

j) There are 50,000 shares authorized.

Add accounts as necessary.

1) Prepare a balanced trial balance

2) Journalize the adjusting entries for 2010.

3) Prepare a multi-step income statement, statement of retained earnings and classified balance sheet for 2010.