Below is the trial balance for Feigenbaum Company as of December 31.

Consider the following additional information:

(a) Feigenbaum uses a perpetual inventory system.

(b) The prepaid expenses were paid on September 1 and relate to a 3-year insurance policy that went into effect on September 1

(c) The unearned revenue relates to rental of an unused portion of the corporate offices. The \($33,000\) was received on April 1 and represents payment in advance for one year's rental.

(d) Plant and Equipment includes \($10,000\) for routine equipment repairs that were erroneously recorded as equipment purchases. The repairs were made on December 30.

(e) Other Assets include \($8,000\) for miscellaneous office supplies, which were pur-
chased in mid-October An end-of-year count reveals that only \($6,500\) of the office supplies remain.

(f) Selling, General, and Administrative Expenses incorrectly includes \($15.000\) for office furniture purchases (Other Assets). The purchases were made on December 30.
(g) Inventory wrongly includes \($6,000\) of inventory that Feigenbaum had purchased on account but that was returned to the supplier on December 28 because of unsatisfactory quality.

Based on the information provided:
1. Record the entries necessary to adjust the books.
2. Record the entries necessary to close the books. Assume the adjustments in (1) do not affect Income Tax Expense.
3. Prepare a post-closing trial balance.

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Cash Accounts Receivable Inventory Prepaid Expenses Land Plant and Equipment Other Assets Accounts Payable. Wages, Interest, and Taxes Payable Unearned Revenue Long-Term Debt Other Liabilities. Common Stock. Retained Earnings. Dividends $ Debit Credit 58,000 $ 402,000 57,000 1,000 54,000 & 65,000 1,167,000 1,152, 1,563,000 157.650 14,147,000 215,000 33,000 11,0 1,201,000 336,000 185,000 1,112,000 139,000 Sales. 2,801,000 Interest Revenue. 23,000 Costs of Goods Sold. 1,565,000 Selling, General, and Administrative Expenses 640,000 Interest Expense.. 79,000 Income Tax Expense 264,000 Totals $6,053,000 $6,053,000