ABC Corp. Balance Sheet As of December 31, 2018

Assets				Liability
Cash		$6,000		Accounts Payable		$3,000
Accounts Receivable		$4,000
				Stockholders' Equity
				Common Stock		$3,000
				Retained Earnings		$4,000
				Total Liability and Stockholders' Equity
Total Assets		$10,000				$10,000

1. On January 1^st, 2019, ABC Corp bought an equipment for $2,000. The equipment has a useful life of 5 years and has a salvage value of $500.
2. On May 1^st, 2018, ABC Corp received $1,200 cash for services to be performed in the future. The service agreement is for a period of two years and the service will be performed evenly throughout the two-year period starting from May 1^st, 2018.
3. On July 1^st, 2018, ABC Corp paid $600 for a one-year insurance policy. The policy starts on July 1^st, 2018 and ends on June 30^th, 2019

a) Make journal entries for the following transactions. b) Prepare the unadjusted trial balance. c) Make the appropriate adjusting entries at year-end. d) Prepare the adjusted trial balance e) Make the appropriate closing entries. Hint: close it directly to retained earnings.