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.

Adjustment data:
1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are operating expenses.)
2. Interest of $4,500 is due and unpaid on notes payable at December 31.
3. Income tax due and unpaid at December 31 is $24,000.
Other data: $15,000 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 into the T-accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet at December 31, 2017.

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PEOPLE'S CHOICE WHOLESALE COMPANY Trial Balance December 31, 2017 Debit Credit $ 31,400 37,600 70,000 92,000 200,000 Accounts Receivable Inventory Accumulated Depreciation-Buildings Equipment $ 60,000 83,500 Notes Payable Accounts Payable Common Stock Retained Earnings 40,500 54,700 17,500 160,000 67,200 10,000 Sales Revenue Sales Discounts Cost of Goods Sold Salaries and Wages Expense Utilities Expense Maintenance and Repairs Expense 6,000 709,900 51,300 11,400 8,900 Insurance Expense 4.800 $1,322,000 1,322,000