Financial Statements and Closing Entrles Outside. Inc. publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31. OUTSIDE. INC. Adjusted Trial Balance December 31 Debit Credit Cash $5.400 Accounts Receivable 1 9.000 Supplies 4.200 Prepaid Insurance 930 Office Equipment 70.000 Accumulated Depreciation $13000 Accounts Payable 1?.000 Unearned Subscription Revenue 10.000 Salaries Payable 3.500 Common Stock 21.000 Retained Earnings 11620 Subscription Revenue 188.300 Advertising Revenue 55.400 Salaries Expense 120.230 Printing and Mailing Expense 85.600 Rent Expense 5.400 Supplies Expense 6.100 Insurance Expense 1.860 Depreciation Expense 5.500 Income Tax Expense 1.600 Totals $325820 $323820 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in generaljournal form. Income Statement Balance Sheet Journal Entries b. General Journal Date Description Debit Credit Dec 31 : $ 0 $ Advertising Revenue 0 0 To close the revenue accounts. 31 0 0 Salaries Expense 0 0 Printing and Mailing Expense 0 0 Rent Expense 0 0 Supplies Expense 0 0 Insurance Expense 0 0 Depreciation Expense 0 0 Income Tax Expense 0 0 To close the expense accounts. Please answer all parts of the