Refer to the data in Problem 5-12A. Required 1. Journalize the adjusting and closing entries. 2. Determine the December 31, 2017, balance of Capital for

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Refer to the data in Problem 5-12A.

Required

1. Journalize the adjusting and closing entries.

2. Determine the December 31, 2017, balance of Capital for Marvin's Fine Gems.

In Problem 5-12A

The trial balance of Marvin's Fine Gems at December 31, 2017, is shown below:

Additional data at December 31, 2017:
a. Rent expense for the year, $48,000.
b. The equipment has an estimated useful life of 10 years and is expected to have no value when it is retired from service.
c. Accrued salaries at December 31, $7,000.
d. Accrued interest expense at December 31, $2,600.
e. Inventory based on the inventory count on December 31, 2017, $351,200.

MARVIN'S FINE GEMS Trial Balance December 31,2017 Accounts receivable Accumulated amortization-equipment $ 43,200 Note payable, long-term 835,400 Amortization expense-equipment $1,278,800 $1,278,800