Please answer a, b, and c with explanations:

Requirement:

1. Show the journal entries needed for the items above. Note that new accounts may be created if needed.
2. Show a post-adjustment income statement and balance sheet (with proper titles) as of December 31, 2015.
3. Prepare the necessary closing entries for Trotsky Corp. for Year 2015.

The following question consists of three parts (a, b and c). Trotsky Corp. had the following trial balance, before adjustments, on December 31, 2015: Debit Credit Cash 1,300 Accounts Receivables 2,200 Inventory 6,000 Office Supplies 200 Prepaid Insurance 100 Equipment 215,000 Accumulated Depreciation 32,000 Land Accounts Payable 650 Income Tax Payable Notes Payable 90,000 Retained Earnings 13,250 Sales Revenue 523,000 Cost of Sales 224,200 Salaries, General and Admin 217,000 Insurance Expense 1,100 Interest Expense 2,000 Gain on disposal of land 11,000 Other Expenses 800 669,900 669,900 The following information is also available for Trotsky (for which no adjustments have been made): 1. Depreciation of $15,000 has not yet been charged on the equipment. 2. It was determined that $20,000 had been received in cash and credited to sales revenue, but the related consulting work was not provided until January 20, 2016. 3. Out of the prepaid insurance, only $70 remained as of December 31. 4. Office supplies of $2,200 were purchased during 2015, but were charged immediately to salaries, general, and administrative expense. At the year end, office supplies costing $600 were still on hand. 5. December salary for year 2015 were calculated to be $20,000 but have not yet been recorded. 6. December consulting work of $40,000 were performed but have not yet been recorded