Flip Company's December 31, 2014 trial balance is as follows: Flip Corporation Trial Balance December 31, 2014 Account Debit Credit Cash $43,500 Accounts Receivable 54,500 Allowance for Doubtful Accounts 500 Notes Receivable 30,000 Merchandise Inventory 55,000 Land 20,000 Building 150,000 Accumulated Depreciation, Building $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 & 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 Flip is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.

Additional Information:
a. Notes Receivable is a 3-months, 6% note accepted on December 1, 2014.

b. Long Term Notes Payable is a 5-year, 5% note, that was signed on July 1, 2014. Interest is payable annually.

c. Building is depreciated at 3% per year. There is no salvage value.

d. Equipment is depreciated at 15% year. There is no salvage value.

e. Flip discovered, on December 30th, 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.

f. The year-end physical count for Merchandise Inventory reflected a value of $52,500. Any difference in value will not be considered theft or loss.

g. Salaries for the last half of December, payable in January, amount to $6,500.

h. Flip estimates that of the Accounts Receivable 5% will not be collectable.

Required: a. Prepare in journal form, any required correcting entries b. Prepare in journal form, all end-of-the period adjusting entries c. Prepare a December adjusted trial balance d. Prepare a classified balance sheet for the year ended December 31, 2014 e. Prepare in journal form, the closing entries for the year ended December 31, 2014

To answer your question and solve the problem, we need to go through the given information step-by-step and perform the necessary calculations and adjustments. Let's break down the required tasks one by one:

a. Prepare the correcting entries:
To correct the error made by the bookkeeper, we need to reverse the incorrect entry and record the correct one. The incorrect entry was a debit to Accounts Receivable and a credit to Sales Revenue, instead of a debit to Cash and a credit to Sales Revenue. The correcting entry would be as follows:
- Debit: Sales Revenue $1,500
- Credit: Accounts Receivable $1,500

b. Prepare the adjusting entries:
Based on the additional information provided, we need to make several adjusting entries:
1. Adjusting the Notes Receivable and Interest Income:
Since the Notes Receivable is a 3-months, 6% note accepted on December 1, 2014, we need to calculate the interest earned for the month of December.
- Debit: Notes Receivable $500 (Interest for December: $30,000 x 6% x 1/12)
- Credit: Interest Income $500

2. Adjusting the Long Term Notes Payable and Interest Expense:
The Long Term Notes Payable is a 5-year, 5% note signed on July 1, 2014, with interest payable annually. We need to calculate the interest expense for the year.
- Debit: Interest Expense $3,750 (Interest for the year: $75,000 x 5%)
- Credit: Long Term Notes Payable $3,750

3. Adjusting the Depreciation expense for Building:
The Building is depreciated at 3% per year with no salvage value. We need to calculate the depreciation expense for the year.
- Debit: Depreciation Expense - Building $4,350 (Depreciation for the year: $150,000 x 3%)
- Credit: Accumulated Depreciation - Building $4,350

4. Adjusting the Depreciation expense for Equipment:
The Equipment is depreciated at 15% per year with no salvage value. We need to calculate the depreciation expense for the year.
- Debit: Depreciation Expense - Equipment $7,500 (Depreciation for the year: $50,000 x 15%)
- Credit: Accumulated Depreciation - Equipment $7,500

5. Adjusting the Allowance for Doubtful Accounts:
Flip estimates that 5% of the Accounts Receivable will be uncollectible. We need to adjust the allowance accordingly.
- Debit: Bad Debt Expense $2,725 (Accounts Receivable $54,500 x 5%)
- Credit: Allowance for Doubtful Accounts $2,725

c. Prepare the December adjusted trial balance:
To prepare the adjusted trial balance, we need to update the trial balance with the correcting and adjusting entries we have made. The adjusted trial balance would include the balances after the corrections and adjustments.

d. Prepare the classified balance sheet:
To prepare the classified balance sheet, we need to categorize the accounts into different sections such as current assets, property, plant, and equipment, etc. and then list the balances within each section. The balance sheet should include the corrected and adjusted balances.

e. Prepare the closing entries:
Closing entries are made to transfer the balances of temporary accounts (revenue, expense, and dividend accounts) to the retained earnings account. Here are the closing entries for the year ended December 31, 2014:
- Debit: Sales Revenue, Salaries Expense, Utilities Expense, Cost of Goods Sold, Administrative Expenses, Sales Expenses $920,000
- Credit: Retained Earnings $920,000

By following these steps, you should be able to prepare the required entries and financial statements for Flip Company for the year ended December 31, 2014.