P3-50. Preparing Financial Statements and Closing Entries Trails, Inc., publishes magazines for skiers and hikers. The company's adjusted trial balance for the year ending December 31, 2018, is: TRAILS, INC. Adjusted Trial Balance December 31, 2018 Debit Credit $ 3,400 8,600 4,200 930 66,000 Cash.... Accounts receivable. Supplies ... Prepaid insurance. Office equipment Accumulated depreciation Accounts payable Subscription liabilities Salaries payable. Common stock. Retained earnings Subscription revenue Advertising revenue Salaries expense Printing and mailing expense Rent expense Supplies expense. Insurance expense Depreciation expense. Income tax expense Totals $ 11,000 2,100 10,000 3,500 25,000 23,220 168,300 49,700 100,230 85,600 8,800 6,100 1,860 5,500 1,600 $292,820 $292,820 a. REQUIRED Prepare its income statement and statement of stockholders' equity for 2018, and its balance sheet at December 31, 2018. There were no cash dividends and no stock issuances or repur- chases during the year. b. Prepare entries to close its accounts in journal entry form