Surian Motors Company prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2016:

SURIAN MOTORS COMPANY

Worksheet

For the Year Ended December 31, 2016

1		Trial Balance	Trial Balance	Adjustments	Adjustments	Income Statement	Income Statement	Retained Earnings Statement	Retained Earnings Statement	Balance Sheet	Balance Sheet
2	Account	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
3	Cash	2,500.00
4	Accounts Receivable	4,000.00
5	Allowance for Doubtful Accounts		300.00
6	Inventory	8,200.00
7	Prepaid Rent	3,600.00
8	Equipment	30,000.00
9	Accumulated Depreciation		12,000.00
10	Accounts Payable		3,700.00
11	Note Payable		5,000.00
12	Common Stock		8,900.00
13	Retained Earnings (1/1/16)		10,200.00
14	Dividends	1,000.00
15	Sales Revenues		45,000.00
16	Cost of Goods Sold	21,000.00
17	Salaries Expense	7,100.00
18	Utilities Expense	3,300.00
19	Advertising Expense	4,400.00
20	Totals	$85,100.00	$85,100.00

Additional information: (a) The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value; (b) salaries accrued but not recorded total $500; (c) on January 1, 2016, the company had paid 3 years rent in advance at $100 per month; (d) bad debts are expected to be 1% of total sales; (e) interest of $400 has accrued on the note payable (the note payable is due on July 1, 2017); and (f) the income tax rate is 40% on current income and will be paid in the first quarter of 2017.

Required:

1.	Complete the worksheet.
2.	Prepare financial statements for 2016.
3.	Prepare closing entries in the general journal.

SURIAN MOTORS COMPANY Score: 181/192 Balance Sheet December 31, 2016 Assets 2. Current Assets: 3 Cash $2,500.00 Accounts receivable $4,000.00 (750.00) 5 Less: Allowance for doubtful accounts 6 Inventory 8,200.00 Prepaid rent 2,400.00 8 Total current assets $16,350.00 9 Property, Plant, and Equipment: 10 Equipment Less: Accumulated depreciation $30,000.00 (15,000.00) 11 Total property, plant, and equipment 15,000.00 13 Total Assets Liabilities 15 Current Liabilities: 16 Accounts payable $3,700.00