Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company?s fiscal year-end.?

In addition, the company had the following year-end adjusting entries.

Required:

Complete the following steps:

1. Enter the unadjusted balances from the trial balance into T-accounts.

2. Post the adjusting entries to the accounts.

3. Prepare an adjusted trial balance.

4. Prepare an income statement and a statement of shareholders? equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. Assume that no common stock is issued during the year.

5. Record closing entries.

6. Post closing entries to the accounts.

7. Prepare a post-closing trial balance.

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Accounts Debit Credit $ 10,300 9,500 Cash Accounts Receivable Interest Receivable -0- Supplies Prepaid Rent 2,000 7,200 Land 78,000 20,000 Notes Receivable $ 7,700 Accounts Payable Salaries Payable Deferred Revenue Utilities Payable Common Stock -0- 5,300 -0- 79,000 19,700 42,200 Retained Earnings Service Revenue Interest Revenue -0- Salaries Expense Rent Expense Supplies Expense Utilities Expense 24,500 -0- -0- 2,400 $153,900 $153,900 Totals Debit Credit a. Salaries Expense. Salaries Payable b. Interest Receivable. 2,100 2,100 800 Interest Revenue 800 c. Supplies Expense. Supplies. d. Deferred Revenue 1,300 1,300 3,300 Service Revenue 3,300 e. Rent Expense.. Prepaid Rent. f. Utilities Expense. Utilities Payable.. 5,400 5,400 .......... ... ............. 200 ...... .... .... 200