The following trial balance was taken from the books of Fisk Corporation on December 31, 2007.

AccountDebitCredit

Cash$12,000

Accounts Receivable40,000

Note Receivable7,000

Allowance for Doubtful Accounts$1,800

Merchandise Inventory44,000

Prepaid Insurance4,800

Furniture and Equipment125,000

Accumulated Depreciation--F. & E.15,000

Accounts Payable10,800

Common Stock44,000

Retained Earnings 55,000

Sales280,000

Cost of Goods Sold111,000

Salaries Expense50,000

Rent Expense12,800

Totals$406,600$406,600

At year end, the following items have not yet been recorded.

a.Insurance expired during the year, $2,000.

b.Estimated bad debts, 1% of gross sales.

c.Depreciation on furniture and equipment, 10% per year.

d.Interest at 6% is receivable on the note for one full year.

e.Rent paid in advance at December 31, $5,400 (originally charged to expense).

f.Accrued salaries at December 31, $5,800.

Instructions

(a)Using the above information, complete a ten-column worksheet.

(b)Prepare the necessary adjusting entries.

(c)Prepare the necessary closing entries.

(d)Prepare a properly labeled income statement

(e)Prepare a properly labeled balance sheet.

(f)Prepare a post-closing trial balance.