Bangels Corp. delivers auditing services to both small companies and big corporations. The company performs adjusting entries monthly, whereas closing entries are prepared annually on December 31. An unadjusted trial balance dated December 31, current year, follows.

Bangels - Unadjusted trial balance December 31st current year
Cash	18.687,5
Accounts Receivable	112.500
Prepaid rent	6.250
Unexpired insurance policies	625
Office supplies	662,5
Office Equipment	187.500
Building	375.000
Acc depreciation Building	50.781,25
Acc Depreciation Office Equipment	25.391,25
Ac. Payable	1.875
Notes Payable due 3/1 year 2	150.000
Income tax payable	4.875
Unearned fees	6.875
Salaries payable	12.500
Interest payable	6.875
Capital stock	25.000
Retained Earnings	202.631,25
Dividends	12.500
Sales	1.250.000
Telephone expense	15.000
Office supply expense	31.250
Depreciation expense office equipment	21.485
Depreciation expense building	42.968,75
Rent expense	18.750
Insurance expense	6.875
Salary expense	875.000
Income tax expense	4.875
interest expense	6.875
Totals	1.736.804	1.736.804

Prepare an after-adjusting entries trial balance. (15 marks) Prepare an income statement for the year ended December 31, current year. (10 marks) Prepare an after closing Balance Sheet. (10 marks) Briefly evaluate the companys profitability and liquidity. (10 marks)

(Adjusting Entries) Current Yr. Dec. 31 (1) Salaries Expense 12.800 12.800 Salaries Payable To record accrued salaries at December 31. 31 75 75 Depreciation Expense: it equipment Accumulated Depreciation: it equipment To record December depreciation expense ($3600 = 48 months). 31 Depreciation Expense: Furniture and Fixtures 6666,68 6666,68 Accumulated Depreciation: Furn. & fixtures To record December depreciation expense ($640,000: 96 months). 31 800 800 Insurance Expense Unexpired Insurance To record December insurance expense ($9600x 1/12). 31 Interest Expense 1200 Interest Payable 1200 To record accrued interest expense in December ($2,400,000 x 6% x 1/12). 5 non lo so 31 21.800 Income Taxes Expense Income Taxes Payable To record income taxes accrued in December. 21.800 (Adjusting Entries) Current Yr. Dec. 31 (1) Salaries Expense 12.800 12.800 Salaries Payable To record accrued salaries at December 31. 31 75 75 Depreciation Expense: it equipment Accumulated Depreciation: it equipment To record December depreciation expense ($3600 = 48 months). 31 Depreciation Expense: Furniture and Fixtures 6666,68 6666,68 Accumulated Depreciation: Furn. & fixtures To record December depreciation expense ($640,000: 96 months). 31 800 800 Insurance Expense Unexpired Insurance To record December insurance expense ($9600x 1/12). 31 Interest Expense 1200 Interest Payable 1200 To record accrued interest expense in December ($2,400,000 x 6% x 1/12). 5 non lo so 31 21.800 Income Taxes Expense Income Taxes Payable To record income taxes accrued in December. 21.800