The problem to be resolved:

Baltic Supplies Unadjusted Trial Balance as at December 31^st, 2018 is as follows:

Accounts	Debit	Credit
Cash	620000
Accounts Receivable	410000
Merchandise Inventory	480000
Store Supplies	144800
Prepaid Insurance Expense	840000
Building and Equipment	2000000
Accumulated Depreciation- Building and Equipment		976000
Accounts Payable		680000
Travelling Expense Payable
Unearned Sales Revenue		450000
Note payable Long term		213800
Baltic Capital		1700000
Baltic Withdrawal	35000
Sales Revenue Earned		2550500
Sales Discount	45100
Sales returns and allowances	62500
Cost of goods sold	401000
Salaries expense	430000
Telephone expense	85000
Depreciation expense- Building and Equipment
Insurance expense	630000
Store supplies expense	130000
Electricity expense	105000
Bad debt expense	65400
Travelling expense	25000
Interest expense	61500
	6,570,300	6,570,300

The following additional information was made available at December 31, 2018

1. Unearned sales revenue, still NOT earned at December 31, 2018 amounted $65,500.
2. The prepaid insurance of $840,000 was paid on July 1, 2018 for 8-months to February 2019.
3. The Building and Equipment has an estimated life of ten (10) years and is being depreciated on the double declining balance method of depreciation, down to a residual value of $10,000.
4. Accrued travelling expense amounted to $8,800 at December 31, 2018.
5. A physical count of inventory at December 31, 2018, reveals $485,000 worth of inventory on hand.

1. Prepare the necessary adjusting entries on December 31, 2018.
2. Prepare the company adjusted trial balance as at December 31, 2018
3. Prepare the companys Multiple-step Income Statement for the year ended December 31, 2018.
4. Prepare the companys Statement of Owners Equity for the year ended December 31, 2018. Prepare the companys classified Balance Sheet at December 31, 2018.
5. Prepare the companys classified Balance Sheet at December 31, 2018.