Question 16 (10 points) Hawks Rocks Ltd. is a pop-up retailer of clothing. The following represents the fully adjusted trial balance of Hawks Rocks Ltd. at December 31, 2020 before the closing entries for the year ended December 31, 2020: Debit Credit 40,000 80,000 40,000 8,000 90,000 60,000 120,000 120,000 10,000 Accounts receivable Accounts payable Accumulated depreciation: Equipment Administrative expenses Bank loan payable (due November 2024) Cash Contributed capital Cost of sales Deferred revenue (goods to be delivered in 2021) Depreciation expense Equipment Income tax expense Interest expenses Interest revenue Inventory Note receivable (due December 2028) Note payable (due October 2021) Prepaid expenses Rental expenses Retained earnings Sales revenue Selling expenses Supplies Total 10,000 280,000 40,000 14,000 2,000 120,000 90,000 110,000 32,000 12,000 104,000 300,000 20,000 10,000 ** 856,000 856,000 *Represents opening retained earnings. There were no dividends declared during the year. Represents the amount of supplies on hand at the end of December 31, 2020. Required 1. Prepare closing entries for the year ended December 31, 2020. 2. Calculate retained earnings as of December 31, 2020. 3. Prepare a properly formatted classified statement of financial position as at December 31, 2020