Prepare in journal form any required correcting entries

Question

XYZ Company's December 31, 2015, trial balance is as follows:

XYZ Company
Trial Balance
December 31, 2015
Account	Debit	Credit
Cash	mce_markernbsp;  43,500
Accounts Receivable	53,500
Allowance for Doubtful Accounts	1,500
Notes Receivable	30,000
Merchandise Inventory	55,000
Land	20,000
Building	150,000
Accumulated Depreciation, Building		mce_markernbsp;  15,000
Equipment	50,000
Accumulated Depreciation, Equipment		21,000
Goodwill	26,000
Accounts Payable		25,000
Long-Term Notes Payable		75,000
Common Stock, $10 par, 2,000 shares authorized and outstanding		20,000
Retained Earnings		147,000
Sales Revenue		700,000
Salaries Expense	150,000
Utilities Expense	3,500
Cost of Goods Sold	350,000
Administrative Expenses	55,000
Sales Expenses	15,000	_______
Totals	$1,003,000	$1,003,000

XYZ is a small company and records adjusting entries and closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.

Additional Information:

1. Notes Receivable is a 3-month, 6% note accepted on November 1, 2015.
2. Long-Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2015. Interest is payable annually.
3. Building is depreciated at 3% per year. There is no salvage value.
4. Equipment is depreciated at 15% per year. There is no salvage value.
5. XYZ discovered, on December 30, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.
6. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
7. Salaries for the last half of December, payable in January, amount to $5,500.
8. XYZ estimates that of the Accounts Receivable, 5% will not be collectable.

Required:

1. Prepare in journal form, any required correcting entries.
2. Prepare in journal form, all end-of-the-period adjusting entries.
3. Prepare a December adjusted trial balance.
4. Prepare a classified balance sheet for the year ended December 31, 2015.
5. Prepare in journal form, the closing entries for the year ended December 31, 2015