Question 3 [20 points] Following are the financial statements for Gulf Corp. at November 30, 2014. Use this information to prepare the closing entries and to calculate the post-closing balance in the Retained earnings account. Use the numbers below as the description for the corresponding closing entry. 1. Close all temporary credit balance accounts to the income summary account. 2. Close all temporary debit balance accounts to the income summary account. 3. Close the income summary (net income) to retained earnings. 4. Close the income summary (net loss) to retained earnings. 5. Close dividends to retained earnings. Enter the dates in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page GJS F Debit Credit Date + + Gulf Corp Income Statement For Month Ended November 30, 2014 Revenues Rent earned 7,940 Commissions earned 11,530 Interest earned 2,600 Total revenues Expenses Depreciation expense, furniture 890 Supplies expense 5,510 Total expenses Net income + 22,070 + - 6,400 15,670 + + Activate Windows Go to Settings to activate Windows Gulf Corp. Post-closing balance in Retained earnings = Gulf Corp Statement of Changes in Equity For Month Ended November 30, 2014 Share Retained Total Capital Earnings Equity Balance, November 1 4,970 11,300 16,270 Issuance of shares 3,800 3,800 Net income 15,670 15,670 Dividends (2,770) (2,770) Balance, November 30 8,770 24,200 32,970 6,110 16,880 26,490 4,440 Gulf Corp. Balance Sheet November 30, 2014 Assets Cash Accounts receivable Furniture Accumulated depreciation, furniture Total assets Liabilities Unearned rent Mortgage payable Total liabilities Equity Share capital Retained earnings Total equity Total liabilities and equity 22,050 45,040 3,160 8,910 12,070 8,770 24,200 32,970 45,040