QUESTION 4 The trial balances of Farro Company follow with the accounts arranged in alphabetic order: Trial Balances Unadjusted Adjusted Post-Closing Accounts Payable $10,000 $10,000 $10,000 Accounts Receivable 2,200 3,200 3,200 Accumulated Depreciation- equipment 13,000 17,000 17,000 Advertising Expense 0 11,300 0 Cash 60,000 60,000 60,000 Depreciation Expense 0 4,000 0 Equipment 75,000 75,000 75,000 Retained Earnings 82,200 82,200 102,400 Dividends 16,000 16,000 0 Prepaid Advertising 12,800 1,500 1,500 Prepaid Rent 15,000 11,000 11,000 Rent Expense 0 4,000 0 Service Revenue 96,000 105,000 0 Supplies 3,200 700 700 Supplies Expense 2,000 4,500 0 Unearned Revenue 23,000 15,000 15,000 Wages Expense 38,000 45,000 0 Wages Payable 0 7,000 7,000 Instructions Analyze the data and prepare a) the adjusting entries and b) the closing entries made by Farro Company. QUESTION 4 The trial balances of Farro Company follow with the accounts arranged in alphabetic order: Trial Balances Unadjusted Adjusted Post-Closing Accounts Payable $10,000 $10,000 $10,000 Accounts Receivable 2,200 3,200 3,200 Accumulated Depreciation- equipment 13,000 17,000 17,000 Advertising Expense 0 11,300.0 Cash 60,000 60,000 60,000 Depreciation Expense 0 4,000 0 Equipment 75,000. 75,000 75,000 Retained Earnings 82,200 82,200 102,400 Dividends 16,000 16,000 0 Prepaid Advertising 12,800 1,500 1,500 Prepaid Rent 15,000 11,000 11,000 Rent Expense 0 4,000 0 Service Revenue 96,000 105,000 0 Supplies 3,200 700 700 Supplies Expense 2,000 4,500 0 Unearned Revenue 23,000 15,000 15,000 Wages Expense 38,000 45,000 0 Wages Payable 0 7,000 7,000 Instructions Analyze the data and prepare a) the adjusting entries and b) the closing entries made by Farro Company