Financial Statements and Closing Entries Outdoors, Inc. publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31. 4,550 OUTDOORS, INC. Adjusted Trial Balance December 31 Debit Credit Cash $7,020 Accounts Receivable 24,180 Supplies 5,460 Prepaid Insurance 1,209 Office Equipment 85,800 Accum. Depr. - Equipment $16,900 Accounts Payable 15,730 Unearned Subscription Revenue 13,000 Salaries Payable Common Stock 32,500 Retained Earnings 30,186 Dividends Subscription Revenue 244,790 Advertising Revenue 64,610 Salaries Expense 156,299 Printing and Mailing Expense 111,280 Rent Expense 11,440 Supplies Expense Insurance Expense 2,418 Depreciation Expense 7,150 Income Tax Expense 2,080 Totals $422,266 $422.266 7,930 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries in general journal form using the Income Summary account. Note: Do not use negative signs with your answers, unless otherwise noted (such as Accumulated Depreciation - Equipment). Income Statement Balance Sheet Journal Entries 0 OUTDOORS, INC. Income Statement For Year Ended December 31 Revenue $ Subscription Revenue 0 Advertising Revenue 0 Total Revenue Expenses Salaries Expense 0 Printing and Mailing Expense 0 Rent Expense 0 Supplies Expense 0 Insurance Expense 0 Depreciation Expense 0 Income Tax Expense 0 Total Expenses Net Income 0 $ 0 OUTDOORS, INC. Balance Sheet December 31 Assets Cash $ 0 $ O O Accounts Receivable Liabilities Accounts Payable Unearned Subscription Revenue Salaries Payable Total Liabilities 0 0 0 0 0 Supplies Prepaid Insurance Office Equipment Less: Accum. Depr. - Equipment (enter as a negative) 0 0 O 0 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ 0 0 Total Assets $ 0 General Journal Description Date Debit Credit Dec 31 $ 0 $ 0 Advertising Revenue 0 0 0 0 To close the revenue account. . 31 0 0 0 0 0 0 0 0 0 0 Salaries Expense Printing and Mailing Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense Income Tax Expense To close the expense accounts. 0 0 0 0 0 0 31 0 0 0 0 To close Income Summary