E3-12 LO 3.6 LO 3.7 LO 3.8 Worksheet, Including Inventory Surian Motors Company prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2019: A B C D E F G J K H I Retained Earnings Statement Debit Credit Trial Balance Debit Credit 2.500 4.000 Income Statement Debit Credit Adiustments Debit Credit Balance Sheet Debit Credit 300 8,200 3.600 30,000 12.000 3 700 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Accounts Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Note Payable (due 7/1/20) Common Stock (1,000 shares) Retained Earnings (1/1/19) Dividends Sales Revenues Cost of Goods Sold Salaries Expense Utilities Expense Advertising Expense Totals IIIIIIIIII IIIIIIIII TUTTI 5.000 8.900 10.200 1.000l 45.000 21.000 7.100 3.300 4.400l 85.100185.100 Additional information: (a) The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value; (b) salaries accrued but not recorded total $500; (c) on January 1, 2019, the company had paid 3 years' rent in advance at $100 per month; (d) bad debts are expected to be 1% of total sales; (e) interest of $400 has accrued on the note payable; and (f) the income tax rate is 40% on current income and will be paid in the first quarter of 2020. Required: 1. Complete the worksheet. 2. Prepare financial statements for 2019. 3. Prepare closing entries in the general journal. Credit Debit Credit Credit Debit Credit ACQUnt Titles Cash Accounts Receivable Debit 2,500 30.000 Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Note Payable (due 7/1/17) Common Stock (1,000 shares) Retained Earnings 11/1/16) Dividends Sales Revenue Cost of Goods Sold Salaries Expense Uflltles Expense Advertising Expense Totals 12,000 3.700 5000 8900 10200 1000 45000 21000 7100 3300 4400 85.100 Depreciation Expense Salarles Payable Rent Expense Bad Debt Expense Interest Expense Interest Payable Income Tax Expense Income Taxes Payable Net Income Retained Earings (12/31/16]