Outside, Inc., publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31:

Required

a. Prepare an income statement for the year and a balance sheet as of December 31.

b. Prepare closing entries directly to Retained Earnings in general journal form.

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Cash...... Accounts receivable. Supplies Prepaid insurance. Office equipment Accumulated depreciation Accounts payable.... Unearned subscription revenue. Salaries payable..... Common stock... Retained earnings Subscription revenue Advertising revenue OUTSIDE, INC. Adjusted Trial Balance December 31 Debit Credit $ 5,400 19,000 4,200 930 70,000 $13,000 17,000 10,000 3,500 21,000 17,620 188,300 55,400 Salaries expense Printing and mailing expense. Rent expense.. Supplies expense. Insurance expense.. Depreciation expense. Income tax expense Totals 120,230 85,600 5,400 6,100 1,860 5,500 1,600 $325,820 $325,820