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$2$ of $2$

Mystic Masters, Inc., provides fortune$-$telling services over the Internet. In recent years the company has experienced severe financial difficulty. Its accountant prepares adjusting entries on a monthly basis, and closing entries on an annual basis, at December $31.$ An adjusted trial balance dated December $31,$ current year, follows.

$\backslash$table$[[\backslash$table$[[$MYSTIC MASTERS, INC.$],[$Adjusted Trial Balance$],[$December $31,$ Current Year$]]],[,$Debits,Credits$],[\backslash$table$[[$Cash$],[$Accounts receivable$]],$S$,\backslash$table$[[960],[300]],,],[$Unexpired insurance,,$2,000,,],[$Prepaid rent,,$1,500,,],[$Supplies$,,200,,],[$Furniture and fixtures,,$8,400,,],[$Accumulated depreciation: furniture and fixtures,,,$$,5,200],[$Accounts payable,,,,$6,540],[$Notes payable,,,,$24,000],[$Salaries payable,,,,$1,700],[$Interest payable,,,,$360],[$Unearned client revenue,,,,$200],[$Capital stock,,,,$4,000],[$Retained earnings,,,,$2,600],[$Client revenue earned,,,,$52,000],[$Insurance expense,,$6,000,,],[$Office rent expense,,$9,000,,],[$Supplies expense,,$440,,],[$Salary expense,,$48,000,,],[$Depreciation expense: furniture and fixtures,,$1,400,,],[$Office and telephone expense,,$3,000,,],[$Internet service expense,,$4,900,,],[$Legal expense,,$1,500,,],[$Interest expense,,$4,000,,],[$Miscellaneous expense,,$5,000,,],[$s$,96,600,\frac{?}{\text{b}\text{a}\text{r}}($$$),96,600]]$

$($Hint: The company incurred no income taxes expense in the current year.$)$

Required:

a$-1.$ Prepare an income statement for the year ended December $31,$ current year.

a$-2.$ Prepare a statement of retained earnings for the year ended December $31,$ current year.

a$-3.$ Prepare the company's balance sheet dated December $31,$ current year.

b$.$ Prepare the necessary year$-$end closing entries.

c$.$ Prepare an after$-$closing trial balance.