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 1st, 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. The company uses double-declining depreciation method.

2. On March 1 st, 2019, ABC Corp received $2,400 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 March 1 st, 2019.

3. On July 1st, 2019, ABC Corp paid $600 for a one-year insurance policy. The policy starts on July 1st, 2019 and ends on June 30th, 2020

Please indicate whether an account is an asset (A), liability (L), or equity (E) for journal entries, adjusting entries, and closing entries to receive full credits.

Make journal entries for the follow transactions. (1 point each)

Prepare the unadjusted trial balance. (1 point)

Make the appropriate adjusting entries at year end. (1 point each)

Prepare the adjusted trial balance (1 point)

Make the appropriate closing entries. Hint: close it directly to retained earnings. (1 point each)