LOS, 9 E2-33. •Preparing Financial Statements and Closing Process Beneish Company has the fo llowing account balances at December 31, the end of its fiscal year .

Debit Credit Cash ................ ... . ... .. . . .. .. ... . $ 8,000 Accounts receivable ............... .. ..... . 6,500 Equipment .................... . .. . ..... . 78,000 Accumulated depreciation ...... . ...... . .. . . $ 14,000 Notes payable ............. . .... . .. . .. . .. . 10,000 Common stock ............ . .......... . .. . 43,000 Retained earnings ........... .. . .. . . .. . .. . 20,600 Dividends ............. ... . .... . .. . .. . .. . 8,000 Service fees earned ..... .. . . .... . .. . .. ... . 75,000 Rent expense ... ......... . . .... . ..... . .. . 18,000 Salaries expense ....... . . .... . ... . . .. . .. . 37,100 Depreciation expense ... . ................. . 7,000 Totals . ... . .. ......... ...... .. . .. . .. .. . . $162,600 $162,600

a. Prepare Beneish Corporation's income statement and statement of stockholders' equity for year-end December 31 and its balance sheet as of December 3 1. There were no stock issuances or repurchases during the year.

b. Prepare journal entries to close Beneish 's temporary accounts.

c. Set up T-accounts for each account and post the closing entries.