AP3-20 (Prepare journal entries, trial balances, and closing entries) Evergreen Retail Company, whose fiscal year end is December 31, had the following transactions in its f of operations: 1. Issued common shares for $65,000 cash on January 1, 2016. 2. Borrowed $15,000 of additional financing from the bank on January 1, 2016. 3. Bought equipment for $25,000 cash, also on January 1, 2016. 4. Made $60,000 of inventory purchases on account. 5. Had total sales of $92,000, of which $28,000 were on account. The cost of the prod 6. Bought supplies for $800 cash. 7. Collected payments of $24,000 from customers on their accounts. 8. Paid 9. Paid employees $36,200. suppliers $25,000 for the inventory that had been purchased on account. aid the interest on the bank loan on December 31, 2016, The interest rate was 8%. 11. Declared dividends of $2,000, which will be paid in 2017. Information for adjusting entries: 12. The equipment purchased on January 1 has an estimated useful life of eight years and an estimated residual value of $1,000 at the end of its life. 13. Supplies costing $200 were still on hand at the end of the year 14. Wages in the amount of $800 were owed to employees at the end of the year. These will be paid early in 2017. Required: i. Prepare journal entries for transactions 1 through 11. ii. Prepare adjusting journal entries for adjustments 12 to 14. iii. Set up T accounts, post the 2016 entries, and calculate the balance in each account. Prepare a trial balance and ensure that the total of the debit balances is equal to the total of the credit balances b) e) Prepare the closing entries, post them to the T accounts, and calculate the final balance in each account