Preparation of adjusting entries. Exhibit 3.19 presents an unadjusted, preclosing trial balance for Williamson Corporation on December 31, Year 9. The firm closes its books annually. Additional data include the following:

(1) The firm calculates depreciation on equipment using an eight-year life and zero estimated salvage value.

(2) The amount shown for Advances by Customers represents the amount received from a customer during December, Year 8, for goods shipped to that customer during February, Year 9.
(3) The firm received from a customer a cash payment of \(\$ 860\) relating to a previous sale on account. The firm incorrectly credited Accounts Payable when it received the cash.
(4) The amount appearing in the Prepaid Rent account relates to prepayments as of January 1, Year 9. The firm charged rental payments during Year 9 totaling \(\$ 15,000\) to Marketing and Administrative Expenses. Prepaid rent on December 31 , Year 9 , totals \(\$ 1,400\).
(5) Unpaid salaries as of December 31, Year 9, total \(\$ 2,250\).
(6) The inventory of merchandise on December 31 , Year 9 , totals \(\$ 15,200\).
(7) The income tax rate is 30 percent.
Present adjusting entries on December 31, Year 9. Use only the accounts listed in the trial balance.

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EXHIBIT 3.19 WILLIAMSON CORPORATION Unadjusted, Preclosing Trial Balance December 31, Year 9 (Problem 33) Accounts Payable Accounts Receivable Accumulated Depreciation Advances by Customers Cash Common Stock Depreciation Expense Equipment Income Tax Expense $ 14,700 6,920 50,000 Income Tax Payable Marketing and Administrative Expenses Merchandise Cost of Goods Sold Prepaid Rent Merchandise Inventory Retained Earnings 45,600 110,000 1,200 Salaries Payable Sales Revenue $ 8,900 14,950 290 10,000 42,480 1,800 150,000 $228,420 $228,420