Pauls Guitar Shop, Inc.

Adjusted Trial Balance

December 31, 2015

Account	Debit	Credit
Cash	$ 32,800
Account Receivable	300
Prepaid insurance	1,000
Equipment	39,800
Accumulated Depreciation	100,000
Accounts Payable		2,000
Common Stock		$49,000
Retained Earnings		450
Dividends		1,000
Service Revenue		95,150
Wages Expenses	1,000
Rent Expenses		27,800
Depreciation Expenses	500
Totals	175,400	175,400

1. Based on the above adjusted trial balance, prepare the income statement for the month of December. Statement of retained earnings for the month of December. And balance sheet. On December 31, 2015. Be sure income appropriate titles and dates on all of your statements.

B. Prepare the closing entries in prepare journal form at the end of December 2015.