Klinger Corporation's balance sheet at December 31, 2013, is presented below.

KLINGER CORPORATION Balance Sheet December 31, 2013
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
Buildings	142,000
Accumulated depreciationbuildings	(22,000)
	$233,000

During 2014, the following transactions occurred.

1.	On January 1, 2014, Klinger issued 1,200 shares of $40 par, 7% preferred stock for $49,200.
2.	On January 1, 2014, Klinger also issued 900 shares of the $10 par value common stock for $21,000.
3.	Klinger performed services for $320,000 on account.
4.	On April 1, 2014, Klinger collected fees of $36,000 in advance for services to be performed from April 1, 2014, to March 31, 2015.
5.	Klinger collected $276,000 from customers on account.
6.	Klinger bought $35,100 of supplies on account.
7.	Klinger paid $32,200 on accounts payable.
8.	Klinger reacquired 400 shares of its common stock on June 1, 2014, for $28 per share.
9.	Paid other operating expenses of $188,200.
10.	On December 31, 2014, Klinger declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2015.
11.	An account receivable of $1,700 which originated in 2013 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 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

(You may want to set up T-accounts to determine ending balances.)

1.

Prepare journal entries for the transactions listed above and adjusting entries.

2. Prepare an adjusted trial balance at December 31, 2014.

Totals

$740,690

3. Prepare all necessary closing entires