Solomon Corporations adjusted trial balance for the year ending December 31, 2015, is:

SOLOMON CORPORATION

Adjusted Trial Balance

December 31, 2015

DebitCredit

Cash.......................................................$ 4,000

Accounts receivable...........................................6,500

Equipment ..................................................78,000

Accumulated depreciation.....................................CREDIT:.$ 14,000

Notes payable ...............................................CREDIT:10,000

Common stock...............................................CREDIT:43,000

Retained earnings ............................................CREDIT:12,600

Service fees earned ...........................................CREDIT:71,000

Rent expense................................................18,000

Salaries expense .............................................37,100

Depreciation expense..........................................7,000

Totals ......................................................$150,600

a. Prepare its income statement and statement of stockholders equity for the current year, and its

balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock

issuances or repurchases.

b. Prepare entries to close its temporary accounts in journal entry form.

c. Set up T-accounts for each of the ledger accounts, enter the balances above, and post the

closing entries to them. And add a horizontal closing statement. After these entries are posted, what is the post-closing balance of the

Retained Earnings account?