ABC Corp. has the following balances:

• Cash: $40,000
• Accounts Receivable: $18,000
• Supplies: $5,000
• Prepaid Insurance: $2,000
• Accounts Payable: $8,000
• Salaries Payable: $3,000
• Equipment: $100,000
• Accumulated Depreciation: $20,000
• Common Stock: $50,000
• Retained Earnings: $84,000

Requirements:

1. Prepare the adjusted trial balance.
2. Calculate the debt to equity ratio.
3. Determine the net income for the period.
4. Prepare closing entries.
5. Explain the impact of accumulated depreciation on financial statements.