Question 3 [20 points] Following are the financial statements for Global Filter Corp. at December 31, 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 + - Global Filter Corp. Income Statement For Month Ended December 31, 2014 Revenues Rent earned 6,440 Consulting revenue earned 12,370 Total revenues Expenses Depreciation expense, furniture 1,510 Property taxes expense 6,210 Total expenses. Net income 18,810 + - + - 7,720 11,090 + - Clobal Filter Carn General Journal Account/Explanation Page GJS F Debit Credit Date + - Global Filter Corp. Income Statement For Month Ended December 31, 2014 Revenues Rent earned 6,440 Consulting revenue earned 12,370 Total revenues. Expenses Depreciation expense, furniture 1,510 Property taxes expense 6,210 Total expenses Net income 18,810 + - + - 7,720 11,090 Post-closing balance in Retained earnings = Global Filter Corp Statement of Changes in Equity For Month Ended December 31, 2014 Share Retained Total Capital Earnings Equity Balance, December 1 3,690 4,690 8,380 Issuance of shares 2,400 2,400 Net income 11,090 11,090 Dividends (2,990) (2,990) Balance, December 31 6,090 12,790 18,880 Global Filter Corp. Ralance Sheet Net income Dividends Balance, December 31 11,090 11,090 (2,990) (2,990) 12,790 18,880 6,090 7,780 9,200 12,200 2,220 9,980 26,960 Global Filter Corp. Balance Sheet December 31, 2014 Assets Cash Accounts receivable Furniture Accumulated depreciation, furniture Total assets Liabilities Property taxes payable Bonds payable Total liabilities Equity Share capital Retained earnings Total equity Total liabilities and equity... 3,330 4,750 8,080 6,090 12,790 18,880 26,960 Official Time: 2:46:35 SUBMIT AND MARK SAVE AND CLOSE