Refer to the data in the Mid-Chapter Summary Problem (State Service Company, page 132-133). Required 1. Journalize and post the adjusting entries. (Before posting to the accounts, enter into each account its balance as shown in the trial balance. For example, enter the $370,000 balance in the Accounts Receivable account before posting its adjusting entry.) Key adjusting entries by letter, as shown in the work sheet solution to the Mid-Chapter Summary Problem. You can take the adjusting entries straight from the work sheet on page 133. 2. Journalize and post the closing entries. (Each account should carry its balance as shown in the adjusted trial balance.) To distinguish closing entries from adjusting entries, key the clos- ing entries by number. Draw arrows to illustrate the flow of data, as shown in Exhibit 4-9. Indicate the balance of the Capital account after the closing entries are posted. 3. Prepare the income statement for the year ended December 31. 20X1. List Miscellaneous Expense last among the expenses, a common practice. 4. Prepare the statement of owner's equity for the year ended December 31, 20X1. Draw an arrow linking the income statement to the statement of owner's equity. 5. Prepare the classified balance sheet at December 31, 20X1. Use the report form. All liabilities are current. Draw an arrow linking the statement of owner's equity to the balance sheet.