The trial balance of the Wall Fashion Center, Inc. contained the following accounts at December 31, 2017 the end of the companys calendar year.

WALL FASHION CENTER, INC.
Trial Balance
31-Dec-17
	Debit		Credit
Cash	$ 16,700
Accounts Receivable	33,700
Merchandise Inventory (Beginning)	38,000
Store Supplies	5,500
Store Equipment	85,000
Accumulated Depreciation-Store Equipment			$ 18,000
Delivery Equipment	48,000
Accumulated Depreciation-Delivery Equipment			6,000
Notes Payable			51,000
Accounts Payable			48,500
Common Stock			80,000
Retained Earnings			30,000
Dividends	12,000
Sales			746,600
Sales Returns and Allowances	4,200
Purchases	503,600
Purchase Returns and Allowances			6,900
Purchase Discounts			3,700
Freight-in	10,800
Salaries Expense	140,000
Advertising Expense	26,400
Utilities Expense	17,000
Repair Expense	9,100
Delivery Expense	16,700
Rent Expense	24,000
	$ 990,700		$ 990,700

Adjustment data:

Store supplies on hand totaled $3,500.

Depreciation is $9,000 on the store equipment and $7,000 on the delivery equipment.

Interest of $11,000 is accrued on notes payable at December 31.

Other data:

Merchandise inventory on hand at December 31, 2017 is $45,000.

Salaries expense is 70% selling and 30% administrative.

Rent expense and utilities expense are 80% selling and 20% administrative.

$30,000 of notes payable are due for payment next year.

Repair expense is 100% administrative.

The beginning balance of accounts receivable is $31,250.

The amount of total assets at the beginning of the year is $199,700.

Instructions

1)Journalize the adjusting entries.

2)Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of December 31, 2017.