Hiatt Corporation's balance sheet at December 31, 2009, is presented below. HIATT CORPORATION Balance Sheet December 31, 2009 Cash $ 24,600 Accounts payable $ 25,600 Accounts receivable 45,500 Common stock ($10 par) 80,000 Allowance for doubtful accounts (1,500) Retained earnings 127,400 $233,000 Supplies 4,400 Land 40,000 Building 142,000 Accumulated depreciation-building (22,000) $233,000 During 2010, the following transactions occurred. 1. On January 1, 2010, Hiatt issued 1,500 shares of $20 par, 7% preferred stock for $33,000. 2. On January 1, 2010, Hiatt also issued 900 shares of the $10 par value common stock for $21,000. 3. Hiatt performed services for $280,000 on account. 4. On April 1, 2010, Hiatt collected fees of $36,000 in advance for services to be performed from April 1, 2010, to March 31, 2011. 5. Hiatt collected $267,000 from customers on account. 6. Hiatt bought $35,100 of supplies on account. 7. Hiatt paid $32,200 on accounts payable. 8. Hiatt reacquired 400 shares of its common stock on June 1, 2010, for $38 per share. 9. Paid other operating expenses of $188,200. 10. On December 31, 2010, Hiatt declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2011. 11. An account receivable of $1,300 which originated in 2009 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $5,900 of supplies remain unused at year-end. 2. Recorded revenue earned from item 4 above. 3. The allowance for doubtful accounts should have a balance of $3,500 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Instructions: To be done in word. (You may want to set up T accounts to determine ending balances.) (a) Prepare journal entries for the transactions listed above and adjusting entries. (b) Prepare an adjusted trial balance at December 31, 2010. Totals $671,350 (c) Prepare all closing entries. Net income $54,250 Tot. assets $361,200