The trial balance of Peoples Choice Wholesale Company contained the following accounts shown at December 31, the end of the companys fiscal year.

PEOPLES CHOICE WHOLESALE COMPANY Trial Balance December 31, 2017

Debit

Credit

Cash

$ 39,250

Accounts Receivable

47,000

Inventory

87,500

Land

115,000

Buildings

250,000

Accumulated DepreciationBuildings

$ 75,000

Equipment

104,375

Accumulated DepreciationEquipment

50,625

Notes Payable

68,375

Accounts Payable

21,875

Common Stock

200,000

Retained Earnings

84,000

Dividends

12,500

Sales Revenue

1,152,625

Sales Discounts

7,500

Cost of Goods Sold

887,375

Salaries and Wages Expense

64,125

Utilities Expense

14,250

Maintenance and Repairs Expense

11,125

Advertising Expense

6,500

Insurance Expense

6,000

$1,652,500

$1,652,500

Adjustment data:

1.		Depreciation is $10,000 on buildings and $8,750 on equipment. (Both are operating expenses.)
2.		Interest of $5,625 is due and unpaid on notes payable at December 31.
3.		Income tax due and unpaid at December 31 is $30,000.

Other data: $18,750 of the notes payable are payable next year.

Journalize the adjusting entries.

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. Prepare an adjusted trial balance. Prepare a multiple-step income statement for the year ended December 31, 2017.