The following trial balance was taken from the books of Aaron Alvarez Corporation on December 31, 2020.

Account	Debit	Credit
Cash	$ 9,000
Accounts Receivable	40,000
Notes Receivable	10,000
Allowance for Doubtful Accounts		$1,800
Inventory	34,000
Prepaid Insurance	4,800
Prepaid rent	12,800
Equipment	100,000
Accumulated Depreciation -Equipment		15,000
Accounts Payable		10,800
Common Stock		4,000
Additional paid-in capital		40,000
Retained Earnings		55,000
Sales Revenue		260,000
Cost of Goods Sold	126,000
Salaries and Wages Expense	50,000	-
	$386,600	$386,600

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

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

b. Allowance for bad debt should be $9,800.

c. Depreciation on equipment, 10% per year on original cost.

d. Interest on note receivable of 6%.

e. Rent paid in advance at December 31, should be $5,400.

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

g. Dividends in the amount of $2,000 have been declared but not paid.

Instructions

(a) Prepare the necessary adjusting entries. (No journal entry descriptions required).

(b) Prepare the necessary closing entries. (No journal entry descriptions required).