The adjusted trial balance for Petruchio Construction as of December 31, 2017, follows.

PETRUCHIO CONSTRUCTION

Adjusted Trial Balance

December 31, 2017No.Account TitleDebitCredit101Cash$5,000104Short-term investments23,000126Supplies9,300128Prepaid insurance7,800167Equipment50,000168Accumulated depreciationEquipment$25,000173Building156,000174Accumulated depreciationBuilding52,000183Land60,260201Accounts payable16,000203Interest payable2,300208Rent payable3,300210Wages payable2,400213Property taxes payable1,000233Unearned professional fees7,400251Long-term notes payable69,000307Common stock5,000318Retained earnings122,200319Dividends12,900401Professional fees earned100,000406Rent earned17,500407Dividends earned2,900409Interest earned2,800606Depreciation expenseBuilding11,440612Depreciation expenseEquipment7,500623Wages expense31,500633Interest expense3,500637Insurance expense9,700640Rent expense13,200652Supplies expense5,800682Postage expense3,000683Property taxes expense3,400684Repairs expense8,500688Telephone expense2,700690Utilities expense4,300Totals$428,800$428,800

The December 31, 2016, credit balance of the Retained Earnings account was $122,200. Petruchio Construction is required to make a $8,000 payment on its long-term notes payable during 2018.

Required:

1.Prepare the necessary closing entries at December 31, 2017.