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1. prepare an Income statement, retained earnings statement, and balance sheet. Prepare closing entries, and post-closing trial balance Joumalize Debit Credit January 1 Cash 3,500,000 Share Capital 3,500,000 1 prepaid rent 6,000 Cash 6,000 1 Advance Salary 5,000 Cash 5,000 1 Cash 24,000 2,000 Service Revenue Revenue received in advance 1 Office Building 22,000 400,000 Cash 200,000 Promissory Note 200,000 1 Cash 300,000 300,000 12% Bond Payable 2 merchandise inventory 605,000 Cash 5.000 Accounts Payable 600,000 2 Accounts Receivable 180,000 Sales Revenue 180.000 80,000 80,000 3,000 2 Cost of goods sold Merchandse Inventory 3 Sales Returns Accounts Receivable 3 Merchandise mentory Cort of goods sold 5 Accounts Payable 8,000 2,000 2,000 20,000 Merchandise inventory 5 Office Supplies 20,000 15,000 Cash 8,000 7,000 70,000 Accounts Payable 6 Work in progress Direct Material Inventory 6 Factory Overhead Indirect material inventory 70,000 15,000 15,000 7 Accounts Payable 580,000 Discount Received 17,400 8 Merchandise Inventory 306,000 Cash 6,000 Accounts Payable 300,000 10 Cash 165,120 Discount Allowed 6,880 172,000 Accounts Receivable 10 Direct labor 15,000 Cash 15,000 270,000 270,000 150,000 11 Accounts Receivable Sales Revenue 11 Cost of good sold Merchandise inventory 12 Accounts Payable Merchandise Inventory 150,000 40,000 40,00 12 Cash 16,000 Accounts Receivable Service Revenue 4,000 20,000 16 Fact overhead 40,000 Cash 40,000 12 Accounts Payable 300,000 Cash 294,000 Discount Receivable 6,000 15 Indirect labor 20,000 Cash 20,000 15 Merchandise Inventory 400,000 Accounts Payable 400,000 16 Accounts Payable 80,000 Merchandise Inventory 80,000 20 Cash 4,000 Accounts receivable 4,000 21 Accounts Payable 320,000 Cash 320,000 22 Work in progress 36,000 Factory I 36,000 30 rent expense 500 Prepaid Rent 500 2,500 30 Salary expense Advance Salary 30 Depreciation expense 2,500 1,458 Office building 1.458

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