The trial balance of People's Choice Wholesale Company contained the following accounts shown at December 31, the end of the company's fiscal year. PEOPLE'S CHOICE WHOLESALE COMPANY Trial Balance December 31, 2017 Debit Credit Cash $32,970 Accounts Receivable 39,480 Inventory 73,500 Land 96,600 Buildings 210,000 $63,000 Accumulated Depreciation-Buildings Equipment 87,675 42,525 Accumulated Depreciation-Equipment Notes Payable 57,435 18,375 Accounts Payable Common Stock 168,000 Retained Earnings 70,560 Dividends 10,500 Sales Revenue 968,205 Sales Discounts 6,300 Cost of Goods Sold 745,395 Salaries and Wages Expense 53,865 11,970 Utilities Expense Maintenance and Repairs Expense 9,345 Advertising Expense 5,460 Insurance Expense 5,040 $1,388,100 $1,388,100 Adjustment data: Depreciation is $8,400 on buildings and $7,350 on equipment. (Both are operating expenses.) 1. Interest of $4,725 is due and unpaid on notes payable at December 31. 2. Income tax due and unpaid at December 31 is $25,200. 3. Other data: $15,750 of the notes payable are payable next year. Journalize the adjusting entries. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1 2 3 Create T-accounts for all accounts used in part a. Enter the trial balance amounts into the T-accounts and post the adjusting entries. (Post entries in the order of journal entries posted in part a.) Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Depreciation Expense Interest Expense Interest Payable Income Tax Expense Income Taxes Payable PEOPLE'S CHOICE WHOLESALE COMPANY Adjusted Trial Balance Debit Credit $ $ Prepare a multiple-step income statement for the year ended December 31, 2017. PEOPLE'S CHOICE WHOLESALE COMPANY Income Statement $ $ $ Prepare a retained earnings statement for the year ended December 31, 2017. (List items that increase retained earnings first.) PEOPLE'S CHOICE WHOLESALE COMPANY Retained Earnings Statement $ $ Prepare a classified balance sheet at December 31, 2017. (List current assets in order of liquidity and property, plant and equipment in order of land, buildings and equipment.) PEOPLE'S CHOICE WHOLESALE COMPANY Balance Sheet Assets $ $ Liabilities and Stockholders' Equity $ $