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ABC Corp. Balance Sheet As of December 31, 2018 $6,000 Liability Accounts Payable $3,000 Assets Cash Accounts Receivable $4,000 Stockholders' Equity Common Stock Retained Earnings $3,000 $4,000 Total Assets $10,000 Total Liability and Stockholders' Equity $10,000 1. On January 1st, 2019, ABC Corp bought an equipment for $2,000. The equipment has a useful life of 5 years and has a salvage value of $500. 2. On May 1st, 2019, ABC Corp received $1,200 cash for services to be performed in the future. The service agreement is for a period of two years and the service will be performed evenly throughout the two-year period starting from May 1st, 2019. 3. On July 1st, 2019, ABC Corp paid $600 for a one-year insurance policy. The policy starts on July 1st, 2019 and ends on June 30th, 2020 Please indicate whether an account is an asset (A), liability (L), or equity (E) for journal entries, adjusting entries, and closing entries to receive full credits. Make journal entries for the follow transactions. (1.5 points each) Prepare the unadjusted trial balance. (1 point) Make the appropriate adjusting entries at year end. (1.5 points each) Prepare the adjusted trial balance (1 point) Make the appropriate closing entries. Hint: close it directly to retained earnings. (1

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