Preparing Adjusting Entries, Financial Statements, and Closing Entries Fischer Card Shop is a small retail shop. Fischer's balance sheet at year-end 2018 is as follows. The following information details transactions and adjustments that occurred during 2019. 1. Sales total $145,850 in 2019; all sales were cash sales. 2. Inventory purchases total $76,200 in 2019; at December 31, 2019, inventory totals $14,500. Assume all purchases are made on account. 3. Accounts payable totals $4,100 at December 31, 2019. 4. Annual store rent for $24,000 and was paid on March 1, 2019, covering the next 12 months. The balance in prepaid rent at December 31, 2018, was the balance remaining from the advance rent payment in 2018. 5. Wages are paid every other week on Friday; during 2019, Fischer paid $12,500 cash for wages. At December 31, 2019, Fischer owed employees unpaid and unrecorded wages of $350. 6. Depreciation on equipment totals $1,700 in 2019. Cash Inventories Fischer Card Shop Balance Sheet December 31, 2018 $8,500 Accounts payable 12,000 Wages payable 3,800 Total current liabilities $5,200 100 5,300 Prepaid rent Total current assets Equipment $7,500 Less Accumulated depreciation 3,000 Equipment, net Total assets 24,300 Total equity (includes retained earnings) 23,500 Total liabilities and equity 4,500 $28,800 $28,800