Benton Company has made adjusting entries for January through November, but not December. The company only prepares closing entries at the end of the year. The accounts from its unadjusted trial balance on December 31 (the end of its fiscal year) are shown below in alphabetical order. Assume that each account has its normal balance of debit or credit.

Problem 2 Comprehensive Problem Benton Company has made adjusting entries for January through November, but not December. The company only prepares closing entries at the end of the year. The accounts from its unadjusted trial balance on December 31 (the end of its fiscal year) are shown below in alphabetical order. Assume that each account has its normal balance of debit or credit. December 31, 2021 Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Cash Common Stock Depreciation Expense Dividends Equipment Insurance Expense Notes Receivable Prepaid Insurance Rent Expense Rent Revenue Retained Earnings Salaries and Wages Expense Service Revenue Supplies Supplies Expense Unearned Rent Revenue 6,900 9,400 1,200 11,800 18,000 1,200 5,800 16,000 1,500 9,000 2,500 12,000 14,400 14,100 18,100 34,600 700 1,800 600 C. e. a. According to a physical count, the supplies on hand at December 31 are $360. b. The company purchased an 8-month insurance policy for $4,000 on September 1. The company accepted a note receivable from a customer on December 1 of the current year. The note has an annual interest rate of 6%, and the note and interest will be received on May 31 of next year. d. The balance in unearned rent revenue is from a $3,600 check received on February 1 of the current year for 12 months of rent. Rent earned, but not yet recorded, at year-end is $1,600. f. The equipment was purchased on October 1 of the current year and has an expected salvage value of $1,600. The estimated useful life is 2 years. g. Additional dividends declared, but not yet recorded (to be paid next month) are $2,400. h. Service revenue earned, but not yet recorded, is $6,700. Required: 1) Prepare all necessary adjusting journal entries for the month of December. (You may also want to do T-accounts, but they are not required). 2) Prepare closing entries for the year. 3) Prepare an income statement for the year. 4) Prepare a balance sheet as of year end (December 31). Be sure to update all accounts (including retained earnings) for the adjusting and closing entries