Subject: Recording Business Transactions according to US GAAP. Consider a hypothetical firm with unadjusted trial balance at December $31$as shown below:

At December $31,$ the company has to record the following transactions

Revenues obtained during the las $10$ months: $$250,000\mathrm{.}00$ all paid in cash

All expenses of the company during the last $10$ months for $$58,000$

The $$55,000$ note payable has been issued on January $1$ and bears $10\%$ interest rate. Interests are paid every $1^{st}$ of January. No repayment of the principal

has been made

The building has a useful life of $30$ years, an estimated salvage value of $$5,000$

Students are requested to:

Prepare the last entries of the year on the journal $($revenues and expenses, adjusting entries$)$

Prepare the closing entries.

The balance sheet of the company closed at December $31.$