Following is the unadjusted trial balance of Baltimore Rentals Corporation at the end of its first year of operations, December 31, 20X5:

Account	Debit	Credit
Cash	3,300
Accounts receivable	4,000
Supplies	500
Truck	8,000
Acc. dep. truck		0
Accounts payable		5,000
Unearned rent revenue		2,400
Income taxes payable		0
Capital Stock		7,000
Dividends	1,000
Rent earned		16,000
Commissions expense	1,000
Depreciation expense-truck	0
Supplies expense	0
Salaries expense	7,000
Telephone expense	0
Income tax expense	0
Rent expense	5,600
	30,400	30,400

The following additional information is available:

A physical count indicates that $300 of supplies is still on hand at December 31.

The truck was purchased on July 1; it has an estimated useful life of 4 years.

One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January.

The balance in the Unearned Rent Revenue account represents six months rental of warehouse space, effective October 1.

A $100 bill for December telephone charges has not yet been recorded.

Income taxes expense for the year is $300. This amount will be paid in the next fiscal year.

Required:

Prepare all necessary adjusting entries at December 31, 20x5.

Prepare an adjusted trial balance at December 31, 20x5.

Prepare an income statement, statement of retained earnings, and a balance sheet.

Prepare and record closing entries including descriptions.

		BALTIMORE RENTALS CORP Work Sheet For Month Ended December 31, 201X
Account	Unadjusted Trial balance		Adjusting entries (1)		Adjusted trial balance (2)		Income statement (3)		Statement of Retained Earnings (3)		Balance Sheet (3)
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	3,300
Accounts receivable	4,000
Supplies	500
Truck	8,000
Acc. Dep. - Truck		0
Accounts payable		5,000
Unearned rent revenue		2,400
Income taxes payable		0
Capital Stock		7,000
Dividends	1,000
Rent earned		16,000
Commissions expense	1,000
Depreciation expense-truck	0
Supplies expense	0
Salaries expense	7,000
Telephone expense	0
Income tax expense	0
Rent expense	5,600
Totals	30,400	30,400			0	0	0	0			0	0
Net income							0					0
Totals							0	0			0	0