Problem -2 Adjusting and closing entries. (30 points) The following trial balance was taken from the books of Fisk Corporation on December 31, 2014 Credit Debit 9,000 40,000 10,000 Account Cash Accounts Receivable Notes Receivable Allowance for Doubtful Accounts $ 1,800 44,000 4,800 110,000 Inventory Prepaid Insurance Equipment Accumulated Depreciation--Equip Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold e Salaries and Wages Expense Rent Expense Totals A15,000 10,800 44,000 55,000 280,000 126,000 50,000 12,800 $406.600 $406.600 At year end, the following items have not yet been recorded Insurance expired during the year, $2,000 b. Estimated bad debts, 1% of gross sales. c. Depreciation on equipment, 10% per year on original cost. OO d. Interest at 5% is receivable on the note for one full year. *e. Rent paid in advance at December 31, $5,400 (originally charged to expense). Accrued salaries and wages at December 31, $5,800. a. CA Rstructions (a) Prepare the necessary adjusting entries. (b) Prepare adjusted trial balance ( Prepare closing entries to income summary account