I need #3-7 under the "Required Section"...starting with #3 Pre-closing trial balance through #7 Post closing trial balance and closing entries.

Accounting Cycle Project 30 Points (Due date: Monday, February 12)

The Queen of the Snows started a business, Winter Carnival Co., a company that specializes in merchandise for ice-fishing, snow-sliding, treasure-hunting and other winter activities. In 2017, the company had the following beginning balances (in dollar).

Accounts receivable $60,000 Accounts payable $30,000 Allowance for doubtful accounts $6,000 Accumulated depreciation machine $50,000 Cash $25,000 Common stock $100,000 Inventory $300,000 Machine $150,000 Prepaid advertisement $27,000 Notes payable $200,000 Salary payable $5,000 Retained earnings $171,000

During 2017, the following transactions occurred.

1. Winter Carnival acquired additional merchandise, totaled $90,000, of which $60,000 was on account.

2. Winter Carnival delivered merchandise and earned sales revenue, totaled $550,000, of which $150,000 was on credit. Cost, to Winter Carnival Co., of the merchandise sold, totaled $300,000.

3. Winter Carnival collected a total of $120,000 on its accounts receivable from its various customers.

4. Winter Carnival borrowed $50,000 on May 1, 2017 from a local bank, on a 6% note for 5 years. Winter Carnival would pay interest semi-annually on each May 1 and November 1.

5. In addition, Winter Carnival signed a sales contract with a customer, Mini-Soda Company to deliver a total of $100,000 merchandise January 2018. Winter Carnival collected $10,000 cash in advance from this customer on November 17, 2017.

6. Winter Carnival paid $70,000 on its accounts payable to its suppliers.

7. Winter Carnival incurred insurance expenses of $12,000, all paid in cash in 2017.

8. Winter Carnival paid its employees $95,000 cash for their salary. At the end of year 2017, the company still owed $3,000 salary payable to its employees.

The following information was also available during 2017 for Winter Carnival Co.

9. Its existing notes payable at the beginning of the year 2017 had a due date in 2020 and an interest rate of 3%. The interest would be paid in cash at the end of each calendar year.

10. The ending balance of allowance for doubtful accounts was estimated to be 10% of the ending balance of its accounts receivable at the end of 2017.

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11. Its prepaid advertisement had 18 months remaining at the beginning of the year 2017.

12. The existing machine had an estimated life of 15 years with no residual value and had been depreciated using the straight-line method. And lastly,

13. The income tax rate was 20% for Winter Carnival and the company would pay its income tax in the first quarter of 2018.

Required:

1. Based on above transactions, prepare journal entries and adjusting entries in 2017 for Winter Carnival.

2. Set up T-accounts and post your journal entries and adjusting entries to T-accounts. (A kind reminder: Dont forget the beginning balances.)

3. Prepare a pre-closing trial balance, as of December 31, 2017.

4. Prepare an income statement, in a good format, for the year ended December 31, 2017 for Winter Carnival.

5. Prepare a statement of retained earnings, in a good format, for the same period for Winter Carnival.

6. Prepare a balance sheet, in a good format, as of December 31, 2017 for Winter Carnival.

7. Prepare closing entries and a post-closing trial balance, as of December 31, 2017.