Rowland Company was organized on January 1, 2013. At the end of the first year of operations, December 31, 2013, the bookkeeper prepared the following trial balances (amounts in thousands of dollars):

Required:
1. Based on inspection of the two trial balances, prepare the 2013 adjusting entries recorded by the bookkeeper (provide brief explanations).
2. Based on these data, prepare the 2013 closing entries with brief explanations.
3. Answer the following questions (show computations):
a. How many shares were outstanding at year- end?
b. What was the amount of interest expense included in the total expenses?
c. What was the balance of retained earnings on December 31, 2013?
d. What was the average income tax rate?
e. How would the rent receivable and deferred rent revenue accounts be reported on the statement of financial position?
f. Explain why cash increased by $40,000 during the year even though net earnings was comparatively very low.
g. What was the amount of earnings per share for 2013?
h. What was the average selling price of the shares?
i. When was the insurance premium paid and over what period of time did the coverage extend?
j. What was the net profit margin ratio for the year?
k. What was the return on equity for the year?

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Unadjusted Trial Balance Adjusted Trial Account Adjustments Balance No. Account Titles Debit Credit Debit 40 17 Credit Cash Trade receivables 12 13 14 17 2 Rent receivable 15 Property. plant, and equipment 16 17 18 19 20 21 46 27 27 Wages payable Income taxes payable Deferred rent revenue 5 4 20 30 20 Contributed capital (1.000 shares) 23 24 25 Retained earnings Revenues (total) 105 103 83 5 27 Income tax expense Totals 182 182 203