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The unadjusted trial balance for ABC Inc is provided below.

Use along with the notes provided below to prepare a multi-step income statement, statement of stockholders equity and a classified balance sheet. Prepare journal entries to show the accounting treatment for each of the adjustments below.

ABC Inc
Unadjusted Trial Balance
For the year ended 31st Dec 2015

	Debit	Credit
Cash	300,000
Accounts Receivable	400,000
Inventory	200,000
Prepaid Insurance	100,000
Equipment	2,000,000
Accumulated DepreciationEquipment		800,000
Land	500,000
Notes Payable (Long term)		200,000
Accounts payable		300,000
Unearned Service Revenue		150,000
Owner's Capital		600,000
Retained earnings		400,000
Sales Revenue		3,000,000
Cost of Goods Sold	1,500,000
Selling Expenses	300,000
Admin Expenses	200,000
Interest revenues		150,000
Loss on sale of fixed assets	100,000
	5,600,000	5,600,000

The following adjustments were provided

1. Fees of $50,000, received in advance during the year were erroneously recorded in Sales revenue.

2. $100,000 recorded as unearned service was earned during the year

3. Prepaid Insurance expired during the year $50,000. (Admin Expense)

4. Equipment is expected to last for 6 years. Salvage value is $200,000 (CoGS)

5. Office salaries and wages earned but unrecorded and unpaid December 31, 2015, $50,000. (Admin Expense)

6. A physical count of inventory on 12/31/2015 shows that $50,000 worth is remaining. (CoGS)

7. Provide a bad debt allowance of $ 50,000 (Selling)

8. Provide income taxes of 20% of income before taxes

9. Dividends of 100,000 was declared (but not paid) for the year.

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