PROBLEM 1 (50 points)

West Laboratory, Inc. closes the accounts at the end of the year. The trial balance on December 31, 2021, after adjustments have been made is as follows:

WEST LABORATORY, INC.

ADJUSTED TRIAL BALANCE

31 DECEMBER. 2021

	DEBIT	CREDIT
CASH	28.200
ACCOUNTS RECEIVABLE	17.000
PREPAID RENT	5.000
UNEXPIRED INSURANCE	7.200
OFFICE SUPPLIES	1.200
MEDICAL EQUIPMENT	22.200
ACCUMULATED DEPRECIATION: MEDICAL EQUIPMENT		6.000
ACCOUNTS PAYABLE		4.000
NOTES PAYABLE		8.400
UNEARNED MEDICAL FEES		14.000
CAPITAL STOCK		21.000
RETAINED EARNINGS		25.500
DIVIDENDS	2.500
MEDICAL FEES EARNED		32.000
SALARIES EXPENSE	16.465
OFFICE SUPPLIES EXPENSE	2.000
INSURANCE EXPENSE	5.800
DEPRECIATION EXPENSE	2.035
INTERNET EXPENSE	1.300
TOTAL	110.900	110.900

Instructions:

1. Prepare closing entries (10 points)
2. Post all closing entries on the ledger accounts (T- accounts) (10 points)
3. Prepare an Income Statement (10 points)
4. Prepare a Statement of Retained Earnings. (10 points)
5. Prepare a Balance Sheet (10 points)