Account Debit Credit Cash $ 8,000 Accounts Receivable 40,000 Notes Receivable 10,000 Allowance for Doubtful Accounts $ 1,800 Inventory 44,000 Prepaid Insurance 4,800 Equipment 110,000 Accumulated Depreciation--Equip. 15,000 Accounts Payable 10,800 Common Stock 43,000 Retained Earnings 75,000 Sales Revenue 260,000 Cost of Goods Sold 126,000 Salaries and wages Expense 50,000 Rent Expense 12,800 Totals $405,600 $405,600 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,400. b. Depreciation on equipment, 10% per year (straight line without salvage value). c. Accrued salaries and wages (unpaid) at December 31, $8,500. Instructions: (a) (6 Points) Prepare the necessary adjusting entries. (b) (2 Points) Calculate the net income for 2015. (c) (2 Points) Prepare the necessary closing entries.