Preparing Financial Statements and Closing Entries Hayley Inc. prepared the following adjusted trial balance as of December 31, 2020. Adjusted Trial Balance Account Debit Credit Cash $54,000 $ Accounts receivable 57,600 Inventory 72,000 Prepaid insurance 2,160 Equipment 405,000 Accumulated depreciation-equipment 81,000 Accounts payable 63,000 Salaries payable 7,200 Interest payable Note payable 720 90,000 Common stock 198,000 Retained earnings 144,000 Dividends 5,400 Sales 630,000 Cost of goods sold 360,000 Salaries expense 214,560 Repair expense 3,780 Insurance expense 2,700 Selling expense 3,960 Depreciation expense 23,760 Interest expense Totals 9,000 $1,213,920 $1,213,920 a. Prepare the income statement for Hayley Inc. for the year ended December 31, 2020. b. Prepare closing entries as of December 31, 2020. a. Prepare the income statement for Hayley Inc. for the year ended December 31, 2020. b. Prepare closing entries as of December 31, 2020. Income Statement Journal Entries a. Prepare the income statement for Hayley Inc. for the year ended December 31, 2020. Note: Enter revenues and expenses in the order of the largest dollar amount to the smallest dollar amount. Note: Do not use negative signs with any of your answers. Hayley Inc. Income Statement For the Year Ended December 31, 2020 Revenues 0 5 0 Total Revenues $ 0 Expenses = 0 = 0 0 0 0 0 0 0 0 0 Total Expenses Check 0 $ 0 a. Prepare the income statement for Hayley Inc. for the year ended December 31, 2020. b. Prepare closing entries as of December 31, 2020. Income Statement Journal Entries b. Prepare closing entries as of December 31, 2020. General Journal Account Name To close revenues to income summary, Dr. Cr. 0 0 0 0 0 0 0 0 Salaries Expense 0 0 Depreciation Expense 0 0 Selling Expense 0 0 Repair Expense 0 0 Insurance Expense 0 0 0 9,000 To close expenses to income summary, To close income summary to retained earnings. To close dividends to retained earnings. Check 0 0 0 0 0 0 0 0