Using the information in the Other Data tab, prepare the adjusting journal entries for the period. Record the entries in the Adjusting Journal Entries (2) tab. (Round all numbers to the nearest dollar.)

After the above adjusting entries are entered on the adjustment worksheet, the amounts should be linked to the adjustments column of the worksheet. Your adjustment amounts should be a formula so if you change the debit/credit amount on the adjustments worksheet, the column amount will automatically change.

Complete the adjusted columns by the using formulas. Think about the best way to do this. Your last two columns should never contain constant numbers but will include formulas only.

Prepare a multiple-step income statement on the proper worksheet. Your Income Statement should be in good form (proper titles, etc., use examples from your book) and well formatted. Do your best designating between selling and administrative expenses. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to the adjusted numbers on your worksheet.)

Prepare a Statement of Stockholders Equity on the proper worksheet. Your Statement should be formatted. You should use formulas in all cells, not constant numbers.

On the designated worksheet tab, prepare in journal entry form the closing entries at the end

of 12/31/17.

Prepare a Classified Balance Sheet on the proper worksheet as of 12/31/17. Your Statement

should be formatted. You should use formulas in all cells, not constant numbers.

Complete the Ratio Tab.

The following items should be considered in adjusting the accounts for financial statement preparation:
1.	On February 1, 2017 a 12-month insurance policy was purchased. No expense has been recoginized for 2017.
2.	Signed a one year lease for rental space on March 1, 2017. By paying for the entire year, the landlord offered a reduced rate.
3.	The physical inventory count of Merchandise Inventory indicated an amount of $163,944.
4.	Supplies on hand at December 31, 2017 total $1,934.
5.	Store Equipment is depreciated on a straight-line basis; residual value is $10,000 with service life of 10 years. The assets were held the entire year.
6.	On August 1, issued Carter Supplies a six-month note receivable at a 8.4% annual interest rate.
7.	Management estimates 2.7% of its gross accounts receivable to be uncollectible.
8.	On September 1, 2017 borrowed funds. The note bears 6.8 % annual interest.
9.	Salaries & Wages of $6,470 are accrued and unpaid at December 31, 2017.
10.	Accrued utilities totaled $752.

	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance		Income Statement		Balance Sheet
	DR	CR	DR	CR	DR	CR	DR	CR	DR	CR
Cash	67,188
Accounts Receivable	88,704
Allowance for Doubtful Accounts		792
Interest Receivable
Merchandise Inventory	168,300
Prepaid Insurance	7,128
Prepaid Rent	22,176
Supplies	30,096
Note Receivable	15,180
Store Equipment	270,864
Accumulated Depreciation - Store Equipment		29,304
Accounts Payable		126,720
Salaries & Wages Payable
Interest Payable
Utilities Payable
Note Payable (final payment due 2018)		24,420
Common Stock		79,200
Retained Earnings		257,400
Dividends	31,680
Sales		2,557,500
Sales Returns and Allowances	15,840
Sales Discounts	34,056
Cost of Goods Sold	1,888,788
Salaries & Wages Expense	430,056
Depreciation Expense - Store Equipment
Bad Debt Expense
Insurance Expense
Rent Expense
Supplies Expense
Utilities Expense	5,280
Interest Revenue
Interest Expense
	3,075,336	3,075,336
Net Income