THE WORKSHEET, FINANCIAL STATEMENTS, AND CLOSING ENTRIES. Marsteller Properties, Inc., owns apartments that it rents to university students. At December 31, 19x7, the following unadjusted account balances were available:

The following information is available for adjustments:

a) An analysis of apartment rental contracts indicates that $3,800 of apartment rent is unbilled and unrecorded at year-end.

b) An inventory reveals that supplies costing $1,400 are on hand at December 31, OXe

c) The buildings are being depreciated on a straight-line basis over 20 years, with an estimated residual value of $500,000.

d) An examination of insurance policies indicates that $12,000 of the prepaid insurance applies to coverage for 19x8.

e) Six months’ interest at 9% is unrecorded and unpaid on the mortgage payable.

f) Wages in the amount of $6,100 are unpaid and unrecorded at December 31.
g) Utilities costs of $300 are unrecorded and unpaid at December 31.
h) Income taxes, 15% of income before taxes, are unrecorded and unpaid at December 31.
REQUIRED:
1. Prepare a worksheet for Marsteller Properties, Inc.
2. Prepare a classified income statement, a statement of changes in retained earnings, and a classified balance sheet for Marsteller Properties, Inc.
3. Prepare the closing entries. lol

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Cash Rent receivable 4,600 32,500 Supplies inventory 4,700 Prepaid insurance 60,000 Buildings 4,560,000 Accumulated depreciation, buildings 1,015,000 Land 274,000 Other assets 26,100 Accounts payable 57,300 Mortgage payable (due in 19x9) 2,000,000 Capital stock 1,500,000 Retained earnings, 12/31/x6 39,200 Rent revenue 660,000 Maintenance expense 73,200 Rent expense Wages expense Utilities expense Interest expense 58,700 84,300 3,400 90,000