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Adjusting and closing entries. The following trial balance was taken from the books of Fisk...

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Accounting

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Adjusting and closing entries. The following trial balance was taken from the books of Fisk Corporation on December 31, 2020. Account Debit Credit Cash $ 9,000 Accounts Receivable 40,000 Notes Receivable 10,000 Inventory 34,000 Prepaid Insurance 4,800 Equipment 100,000 15,000 Accumulated Depreciation--Equip. Accounts Payable 12,600 Common Stock 44,000 55,000 Retained Earnings Sales Revenue Cost of Goods Sold 260,000 126,000 Salaries and Wages Expense 50,000 Rent Expense 12.800 Totals $386,600 386.600 50,000 Salaries and Wages Expense Rent Expense 12.800 Totals $386,600 386,600 At year end, the following items have not yet been recorded: 1) Estimated bad debts, 5% of accounts receivable. 2) Depreciation on equipment, 10% per year on original cost. 3) Interest at 6% is receivable on the note for one full year. Assume that the firm uses the Allowance For Doubtful Accounts Questions: (a) Prepare the necessary adjusting entries. (b) Prepare the necessary closing entries. Then, compute ending balance of Retained Earnings? Show your calculation

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