Assume the following information for company SDA on 31st December 2018, before the preparation of the adjusted trial-balance: Machinery () 38,000 Wages payable 1,300 Accumulated depreciation: machinery 6,000 Bank deposits 12,000 Unearned revenue 2,100 Prepaid insurance 3,600 Accounts receivable 6,500 Advances from customers 1,800 Revenue 13,000 Inventory 3,000 Long-term loans 16,000 Accounts payable 4,500 Retained earnings 13,000 Rent expense 9,600 Share Capital 15,000

Required

Prepare adjusting entries by taking into consideration the following information: a. The accrued interest on long-term loans for the fiscal year 2018 is calculated at an interest rate of 6% on the balance of the loan at this date. b. During December, unearned revenues of 1,500 were earned. c. Depreciation charges on machinery for fiscal year 2018 amount to 3,160. d. The accrued interest on deposits in December is 170. e. On 10th October 2018, SDA prepaid 4,800 for six months rent and debited the account Rent expense for the total amount of 4,800. f. An amount of 600 was recognized as revenue of fiscal year 2018. This amount corresponds to services that will be provided in the next fiscal year 2019. g. Prepaid insurance expired at 31st December 2018.

Record the closing journal entries for the determination of the firms net profit or loss assuming that the firms tax rate is 20% and the annual result of its operations (profit or loss) is carried forward

Prepare the post-closing trial balance. Provide the required calculations. Assume that the fiscal year end date of SDA is on 31st December 2018.