eller of clothing The following represents the fully adjusted trial balance of Hawks Rocks Ltd. at December 31, 2020 before the closing entries for the year ended December 31, 2020: Debit Credit Accounts receivable 40,000 Accounts payable Accumulated depreciation: Equipment 80,000 Administrative expenses 40,000 8,000 Bank loan payable (due November 2024) 90,000 Cash 60,000 Contributed capital 120,000 Cost of sales 120,000 Deferred revenue (goods to be delivered in 2021) 10,000 Depreciation expense 10,000 Equipment 280,000 Income tax expense 40,000 Interest expenses 14,000 Interest revenue 2,000 Inventory 120,000 Note receivable (due December 2028) 90,000 Note payable (due October 2021) 110,000 Prepaid expenses 32,000 Rental expenses 12,000 Retained earnings 104,000 Sales revenue 300,000 Selling expenses 20.000 Supplies Total 856.000 856.000 10.000 Represents opening retained earnings. There were no dividends declared during the year. ** Represents the amount of supplies on hand at the end of December 31, 2020, Required 1. Prepare closing entries for the year ended December 31, 2020. 2. Calculate retained earnings as of December 31, 2020 3. Prepare a properly formatted classified statement of financial position as at December 31, 2020