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Preparing Financial Statements and Closing Procedures Solomon Corporation's adjusted trial balance for the year ending...

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Accounting

Preparing Financial Statements and Closing Procedures

Solomon Corporation's adjusted trial balance for the year ending December 31, 2018, is:

Solomon Corporation

Adjusted Trial Balance

December 31, 2018DebitCreditCash$4,000Accounts Receivable6,500Equipment78,000Accumulated Depreciation$14,000Notes Payable10,000Common Stock43,000Retained Earnings12,600Service Fees Revenue71,000Rent Expense18,000Salaries Expense37,100Depreciation Expense7,000Totals$150,600$150,600

(a) Prepare its income statement and statement of stockholders' equity for the current year, and its balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock issuances or repurchases.

(b) Prepare entries to close its temporary accounts in journal entry form.

(c) Set up T-accounts for each of the ledger accounts, enter the balances above, and post the closing entries to them. After these entries are posted, what is the post-closing balance of the Retained Earnings account?

Note:Do not use negative signs unless otherwise noted.

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