The following unadjusted trial balance was taken from the books of Declans Musical Equipment and Instruction Store, Inc. on December 31, 2021.

Cash $ 14,000

Accounts Receivable 38,000

Allowance for Doubtful Accounts $ 1,800

Note Receivable 7,000

Merchandise Inventory 54,000

Prepaid Insurance 4,800

Furniture and Equipment 100,000

Accumulated Depreciation of F. & E. 20,000

Accounts Payable 9,200

Deferred Revenue 2,000

Common Stock 44,000

Retained Earnings 45,000

Dividends 400

Sales 200,000

Service Revenue 100,000

Cost of Goods Sold 131,000

Salaries Expense 60,000

Rent Expense 12,800

Totals $422,000 $422,000

Additional information as of 12/31/21 is as follows:

a. A four year $4,800 insurance policy was purchased on July 1, 2021.

b. Declan had sales of $3,200 during the last week of December for which he has not received cash payment from customers. He has not yet recorded these sales and must bill the customers.

c. The useful life of Furniture & Equipment is 10 years with no salvage value.

d. Interest at 8% is receivable on the note for one full year.

e. Employees were paid their bi-weekly payroll on Friday, December 24, 2021 for work performed through that date. The next payroll date will be January 7,2022. Employees are paid $2,600 per day, Monday thru Friday.

f. A customer paid $2,000 in advance for group instructional services to be performed in December 2021 and January 2022. Declan recorded this amount as a liability upon receipt.

REQUIRED:

1. Prepare the required adjusting entries for the year ending December 31, 2021.

2. Prepare the required closing entries for the year ending December 31, 2021.

Show work and explain. DONT JUST PUT THE ANSWERS