The following trial balance was taken from the books of Fisk Corporation on December 31, 2010.

Account Debit Credit

Cash $ 12,000

Accounts Receivable 40,000

Note Receivable 7,000

Allowance for Doubtful Accounts $ 1,800

Merchandise Inventory 44,000

Prepaid Insurance 4,800

Furniture and Equipment 125,000

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

Accounts Payable 10,800

Share CapitalOrdinary 44,000

Retained Earnings 55,000

Sales 280,000

Cost of Goods Sold 111,000

Salaries Expense 50,000

Rent Expense 12,800

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) Prepare the necessary adjusting entries. (3 marks)

(b) Prepare the necessary closing entries. (3 marks )