Reference no: EM132478965

The following trial balance was taken from the books of Fisk Corporation on December 31, 2017.

Account                                      Debit                                         Credit

Cash                                    $ 9,000

Accounts Receivable                 40,000

Notes Receivable                      10,000

Allowance for Doubtful Accounts                                           $ 1,800

Inventory                                   34,000

Prepaid Insurance                         4,800

Equipment                                  100,000

Accumulated Depreciation--Equip.                                      15,000

Accounts Payable                                                             10,800

Common Stock                                                               44,000

Retained Earnings                                                            55,000

Sales Revenue                                                                260,000

Cost of Goods Sold                       126,000

Salaries and Wages Expense              50,000

Rent Expense                                12,800

Totals                                          $386,600                     $386,600

At year end, the following items have not yet been recorded.

a. Insurance expired during the year, $2,000.

b. Estimated bad debts, 1% of gross sales.

c. Depreciation on equipment, 10% per year on original cost.

d. Interest at 6% is receivable on the note for one full year.

e. Rent paid in advance at December 31, $5,400 (originally charged to expense).

f. Accrued salaries and wages at December 31, $5,800.

Question (a) Prepare the necessary adjusting entries.

Question (b) Prepare the necessary closing entries.