The problem to be resolved: The following unadjusted trial balance was extracted from the books of KT Supplies at June 30th, 2021. The company is owned by Karen Thompson and trades in the buying and selling of household supplies.

KT Supplies Trial Balance as at June 30, 2021 A/C Name DR $ CR $ Cash 405,670 Accounts Receivable 2,037,100 Merchandise Inventory 660,500 Store Supplies 403,930 Prepaid Rent 165,000 Furniture and Fixtures 1,200,000 Accumulated Depreciation Furniture and Fixtures 360,000 Accounts Payable 1,046,340 Insurance Payable Utilities Payable Unearned Sales Revenue 348,500 Note Payable-Long Term 350,000 Karen Thompson, Capital 2,105,000 Karen Thompson, Withdrawal 248,000 Sales Revenue Earned 4,316,280 Sales Discount 100,300 Sales Returns and Allowances 80,200 Cost of Goods Sold 1,171,770 Salaries Expense 802,750 Rent Expense 605,000 Depreciation Expense Furniture and Fixtures Utilities Expense 418,000 Store Supplies Expense Insurance Expense Bad Debt Expense 105,000 Travelling Expense 102,000 Interest Expense 20,900 Total 8,526,120 8,526,120

The following additional information was made available at June 30th, 2021

a) Store supplies used during the year amounted to $200,580.

b) $55,000 of the prepaid rent has expired as at June 30th, 2021.

c) Unearned sales revenue still not earned, $200,400. The Company expects to earn this amount during January 2022.

d) The Furniture and Fixtures 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.

e) Insurance expenses not paid as at June 30th, 2021 amounted to $130,000.

f) Accrued utilities expense amounted to $38,000 at June 30th, 2021.

g) A physical count of inventory at June 30th 2021, reveals $665,500 worth of inventory on hand.

Other Data:

h) $250,000 of the notes payable is due for payment on December 31st, 2021.

Requirements:

1. Prepare the necessary adjusting entries on June 30th, 2021

2. Prepare the companys multiple-step income statement for the year ended June 30th, 2021.

3. Prepare the companys statement of owners equity for the year ended June 30th, 2021

4. Prepare the companys classified balance sheet at June 30th, 2021