missions earned in calculating the additional rent.) year. (Note: Be sure to use the adjusted amount of com- 2.8B. Financial Statements and Closing Entries Outdoors, Inc.,publishes magazines for skiers and hik- LO5,6 ers. The firm has the following adjusted trial balance at December 31 IBC OUTDOORS, INC. Adjusted Trial Balance December 31 Debit Credit Cash . . .. 18,600 4,200 Prepaid insurance . . . . 70,000 Accumulated depreciation Accounts payable. Unearned subscription revenue.... $13,000 16,100 10,000 21,000 188,300 Retained earnings 49,700 . 120,230 Salaries expense 0 al 85,600 4,800 6,100 1,860 5,500 1,600 Rent expense Supplies expense. Insurance expense. Income tax expense. Totals $324,820 $324,820 . . . Required a. Prepare an income statement for the year and a balance sheet as of December 31 b. Prepare closing entries directly to Retained Earnings in general journal form