The following trial balance was extracted from the books of Columbus Ltd at December 31, the end of the companys financial year. The company is owned by John Columbus and is in the business of buying and farming supplies.

Trial Balance as at December 31, 2018

The following additional information is available at December 31, 2018:

1. Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019.
2. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $100,000.
3. The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000.
4. Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018.
5. A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand.
6. At December 31, $140,000 of the previously unearned sales revenue had been earned.
7. The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000.

REQUIRED:

1. Prepare the necessary adjusting journal entries on December 31. [Narrations are not required]
2. Prepare Columbus Ltd multiple-step income statement for the year ended December 31, 2018.
3. Prepare Columbus Ltd statement of owners equity for the year ended December 31, 2018.
4. Prepare Columbus Ltd classified balance sheet at December 31, 2018.
5. Prepare the closing entries
6. Prepare the post-closing trial balance

Trial Balance DR CR 1,000,000 450,000 15,000 186,000 120,000 450,000 1,000,000 360,000 600,000 320,000 A/C Name Cash Accounts receivable Abwance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Fumiture and Fixtures Accimated deprecision-Funiture and Fixtures Computer Equipment Accumulated depreciation Computer Equipment Accounts payable Wages payable Uneamed Sales revente Notes Payable, Long Term John Columbus, Capital John Columbus, Withdrawals Sales revente Sales discount Sales retums and allowances Cost of goods sold Wages Expense Insurance Expense Depreciation Expense - Fumiture and Futures Depreciation Expense-Computer Equipment Store Supplies Expense Uties Expense Bad Debt kapense Interest Expense Total 150,000 900,000 2,200,000 95,000 1,761,000 120,000 95,000 650,000 450,000 180,000 40,000 180,000 90,000 5,764, 5,764, Trial Balance DR CR 1,000,000 450,000 15,000 186,000 120,000 450,000 1,000,000 360,000 600,000 320,000 A/C Name Cash Accounts receivable Abwance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Fumiture and Fixtures Accimated deprecision-Funiture and Fixtures Computer Equipment Accumulated depreciation Computer Equipment Accounts payable Wages payable Uneamed Sales revente Notes Payable, Long Term John Columbus, Capital John Columbus, Withdrawals Sales revente Sales discount Sales retums and allowances Cost of goods sold Wages Expense Insurance Expense Depreciation Expense - Fumiture and Futures Depreciation Expense-Computer Equipment Store Supplies Expense Uties Expense Bad Debt kapense Interest Expense Total 150,000 900,000 2,200,000 95,000 1,761,000 120,000 95,000 650,000 450,000 180,000 40,000 180,000 90,000 5,764, 5,764