2.Now that you have prepared ESER's first set of financial statements, you need to prepare the closing entries (in good form) to prepare the accounting records for 2017.

3.In early February, your BUS 285 instructor discussed periodic and perpetual inventory systems. To date, you have been using a periodic inventory system for ESER.

4.In BUS 285, you discussed the specific identification, FIFO and average cost inventory cost determination methods. You decided to make some brief notes explaining each of the methods and when they should be used and then decide on the most appropriate method to recommend to Bob for ESER.

After preparing the adjusting entries for Economy Small Engine Repair (ESER), you prepared th following adjusted trial balance: Economy Small Engine Repair Ltd. Adjusted Trial Balance December 31, 2016 Account Name Dr. Cr. Cash $15,750 Accounts receivable 2,600 Inventory 750 Prepaid insurance 800 Repair equipment 6,000 Accumulated depreciation - baking equipment $250 Computer equipment 2,500 Accumulated depreciation - computer equipment 167 Accounts payable 235 Income tax payable 3,500 Unearned revenue 500 Bank loan payable 5,000 Common shares 8,000 Repair revenue 18,250 Advertising expense 250 Cost of goods sold 1,750 Depreciation expense 417 Income tax expense 3,500 Insurance expense 400 Interest expense 50 Utilities expense 235 Wages expense 900 $35,902 $35,902