Following is an adjusted trial balance from Village Lighting Solutions, Inc.:

Requirement
Prepare the necessary closing entries, the income statement, and the statement of changes in shareholders’ equity for the year ended December 31, 2011, and balance sheet as of December 31,2011.

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Village Lighting Solutions, Indc. Adjusted Trial Balance December 31, 2011 Debit Credit 31,655 52,000 11,250 5,800 40,000 Cash Accounts receivable Prepaid rent Prepaid insurance Equipment Accumulated depreciation Land Salaries payable Notes payable Interest payable Common stock Retained earnings Dividends Sales Cost of goods sold Rent expense nsurance expense Depreciation expense Salaries expense Totals 10,000 25,755 1,250 16,875 1,820 25,000a 44,000b 3,500 151,595 45,880 13,000 1,200 5,000 15,500 $250,540 $250,540 Balance at January 1, 2011. (No common stock has been issued during the year.) Balance at January 1, 2011. (No closing entries have been made.)