The trial balance of Customer Choice Wholesale COmpany contained the accounts shown at December 31, the end of the company's fiscal year.

Customer Choice Wholesale Company

Trial Balance

December 31, 2014

Cash $31400 (d)

Accounts Recievable 37600(d)

Inventory 70000 (d)

Land 92000 (d)

Buildings 200000 (d)

Accumulated Depreciation- Buildings $60000 (cr)

Equipment 83500 (d)

Accumulated Depreciation- Equipment 40500 (cr)

Notes Payable 54700 (cr)

Accounts Payable 17500 (cr)

Common Stock 160000 (cr)

Retained Earnings 67200 (cr)

Dividends 10000 (d)

Sales Revenue 922100 (cr)

Sales Discount 6000 (d)

Cost of Goods Sold 709900 (d)

Salaries and Wages Expense 51300 (d)

Utilities Expense 11400 (d)

Maintenance and Repairs Expense 8900 (d)

Advertising Expense 5200 (d)

Insurance Expense 4800 (d)

1322000 1322000

Adjustment Data:

1. Depreciation is $8000 on buildings and $7000 on equipment. (Both are operating expenses)

2. Interest of $4500 is due and unpaid on notes payable at December 31

3. Income tax due and unpaid at December 31 is $24000

Other data: $15000 of the notes payable are payable next year.

Instructions:

a. journalize the adjusting entries

b. create T-accounts for all accounts used in part a. Enter the trial balance amounts in the T Accounts and post the adjusting entries.

c. Prepare and adjusted trial balance.

d. prepare a multple step income statement and a retained earnings statement for the year and a classified balance sheet at December 31, 2014.