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On December 31, 20X2. Avignon Company had the following account balances: Unadjusted Account Debits Credits Cash 1,900 Accounts Receivable 4,640 Inventory 8,700 Office Supplies 0

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On December 31, 20X2. Avignon Company had the following account balances: Unadjusted Account Debits Credits Cash 1,900 Accounts Receivable 4,640 Inventory 8,700 Office Supplies 0 Prepaid Insurance 600 Land 4,100 Buildings 38,000 Accumulated Depreciation (Buildings) 11,500 Equipment 10,700 Accumulated Depreciation (Equipment) 3,100 Accounts Payable 4,300 Salaries Payable Interest Payable 0 Income Taxes Payable 0 Notes Payable (due 3/1/20X3) 8,700 Unearned Rent 1,200 Contributed Capital (2000 shares) 10,000 Retained Earnings 16,775 Sales Revenue 49,355 Rent Revenue O Cost of Goods Sold 27,185 Salaries Expense 4,080 Utilities Expense 2,000 Office Supplies Expense 770 Depreciation Expense 0 Interest Expense Insurance Expense 0 Income Tax Expense Other Expenses 2,255 Total 104,830) 104,830 0 Adjustments Debit Credits Adjusted Debits Credits Credits Unadjusted Debits 1,900 4,640 8,700 0 600 4,100 38,000 11,500 10.700 Account Cash Accounts Receivable Inventory Office Supplies Prepaid Insurance Land Buildings Accumulated Depreciation (Buildings) Equipment Accumulated Depreciation Equipment) Accounts Payable Salaries Payable Interest Payable Income Taxes Payable Notes Payable (due 3/120X3) Unearned Rent Contributed Capital (2000 shares) Retained Earnings Sales Revenue Rent Revenue Cost of Goods Sold Salaries Expense Utilities Expense Office Supplies Expense Depreciation Expense Interest Expense Insurance Expense Income Tax Expense Other Expenses Total 21 3,100 4,300 O 0 0 8,700 1,200 10,000 16,775 49,3551 0 27,185) 4,080 2,000 770 0 O 0 0 2.255 104,830 104,830 All of the year's entries have been recorded except for the following information: a) Depreciation was $1,000 for buildings and $600 for equipment. b) Interest accumulated but not yet paid was $580 on the note payable. c) $175 worth of prepaid insurance expired. d) Salaries accrued but not yet paid were $370. e) Rent that was collected in advance and is now earned at year-end was $800. Office supplies purchased during the year were immediately experised. Supplies purchased for $230 were still on hand at year-end. The income tax rate is 21% and taxes are payable in the first quarter of 20X3. Required: 1) Prepare the appropriate Adjusting Entries, Adjusted Trial Balance, and the Closing Entry

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