4) Prepare the required closing entries.

Martin Air Freight Adjusted Trial Balance

December 31

Debit Credit

Cash.............................................................................. $18,200

Accounts receivable ..................................................... 34,200

Supplies........................................................................ 2,100

Long-term investments ................................................ 25,000

Shipping equipment...................................................... 45,000

Accumulated depreciationShipping equipment........ $11,080

Patent........................................................... 16,000

Accounts payable ......................................................... 16,200

Wages payable ............................................................. 4,120

Long-term notes payable * ................................................ 20,000

Common stock ....................................................... 10,000

Retained earnings ....................................................... 30,400

Dividends .............................................. 15,000

Shipping fees earned .................................................... 145,000

Rent expense ................................................................ 8,000

Wages expense............................................................. 62,000

Supplies expense........................................................... 2,500

Depreciation expenseShipping equipment ................. 4,050

Interest expense............................................................ 1,000

Utilities expense........................................................... 3,750

Totals............................................................................ $236,800 $236,800

* $2,000 of the long-term note payable is due during the next year.