The following trial balance was taken from the books of Fisk Corporation on Dece

Question

The following trial balance was taken from the books of Fisk Corporation on December 31, 2012. Account --------------------------------- Debit -----------------------Credit Cash ------------------------------------$ 9,000DR Accounts Receivable -----------------40,000DR Notes Receivable-----------------------10,000DR Allowance for Doubtful Account-------1,800DR Inventory-----------------------------------44,000DR Prepaid Insurance-----------------------4,800DR Equipment-------------------------------110,000DR Accumulated Depreciation--Equip---15,000DR Accounts Payable----------------------------------------------------10,800CR Common Stock---------------------------------------------------------44,000CR Retained Earnings----------------------------------------------------75,000CR Sales Revenue--------------------------------------------------------260,000CR Cost of Goods Sold-----------------------126,000DR Salaries and wages Expense------------50,000DR Rent Expense---------------------------------12,800 DR Totals -------------------------------------$406,600DR ------------------ $406,600CR 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. 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. Instructions (a) Prepare the necessary adjusting entries. (b) Prepare the necessary closing entries.

Explanation / Answer

ans are 12800 146,200

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