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The following trial balance was taken from the books of Fisk Corporation on December 31, 2007

The following trial balance was taken from the books of Fisk Corporation on December 31, 2007
Account Debit Credit Cash $12,000 Accounts Payable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $1,800 Merchandise Inventory 44,000 Prepaid Insurance 4,800 Furniture and Equipment 125,000 Accumulated Depreciation-Furn & Equip 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 55,000 Sales 280,000 Cost of Goods Sold 111,000 Salaries Expense 50,000 Rent Expense 12,800 ________ Totals $406,600 $406,600

Income Summary
At year end, the following items have not yet been recorded:
a. Insurance unexpired at year end, $2,000.
b. Depreciation on furniture and equipment, 10% per year
c. Interest at 6% is receivable on the note for one full year
d. Rent paid in advance at December 31, $4,200 (originally charged to expense)
c. Accrued salaries at December 31, $5,800

Instructions
a) Prepare the necessary adjusting entries (omit explanations)
b) Prepare the necessary closing entries (omit explanations)



SOLUTION PREVIEW
a) Prepare the necessary adjusting entries (omit explanations) 
Adjusting entries:
Date
Account/description
Debit
Credit
Dec 31, 2007
Insurance expense
      Prepaid Insurance
2,800

2,800
Dec 31, 2007
Depreciation expense
      Accumulated depreciation – Furn. & equip
12,500

12,500



File name: Fisk-Corporation.doc File type: application/msword Price: $4