The post-closing trial balance for Wilson Corp., a retailer, at December 31, 2019, follows. Acc. No. 101 Description Cash 102 Accounts receivable Debit Credit $27,000 $ 0 21,000 103 Allowance for doubtful accounts 1,000 104 Inventory (perpetual inventory system) 35,000 105 Prepaid insurance (20 months remaining) 900 200 Equipment (20-year estimated life, no residual value) 50,000 201 Accumulated depreciation-equipment 22,500 300 Accounts payable 7,500 301 Salaries payable 302 Income taxes payable (for 2019) 400 Common stock, par $1 401 Retained earnings. 4,000 80,000 18,900 500 Sales 600 Cost of goods sold 601 Operating expenses 602 Income tax expense 700 Income summary Total $133,900 $133,900 The following transactions occurred during 2020 in the order shown (use the number at the left in place of a date). 1. Sales revenue was $30,000, of which $10,000 was on credit; the cost, provided using perpetual inventory, was $19,500. 2. Collected $17,000 cash on accounts receivable. 3. Paid $4,000 cash toward income taxes payable (2019). 4. Purchased $40,000 of merchandise, of which $8,000 was on credit. 5. Paid $6,000 cash toward accounts payable. 6. Sales revenue was $72,000 (in cash); cost was $46,800. 7. Paid $19,000 cash in operating expenses. 8. On July 1, 2020, issued 1,000 shares of common stock, par $1, for $1,000 cash. 9. Purchased $100,000 of merchandise, of which $27,000 was on credit. 10. Sales revenue was $98,000, of which $30,000 was on credit; cost, $63,700. 11. Collected $26,000 cash toward accounts receivable. 12. Paid $28,000 cash toward accounts payable. 13. Paid $18,000 cash for various operating expenses. Prepare the closing entries, using the Income Summary account to close out revenues and expenses. 1. Prepare the income statement and balance sheet. 2. 3. Post the closing entries to the ledger. 4. Prepare a post-closing trial balance.