The post-closing trial balance for Wilson Corp., a retailer, at December 31, 2019, follows. Debit Credit $ 27,000 $ 0 21,000 1,000 35,000 900 50,000 22,500 7,500 Acc. No. Description 101 Cash 102 Accounts receivable 103 Allowance for doubtful accounts 104 Inventory (perpetual inventory system) 105 Prepaid insurance (20 months remaining) 200 Equipment (20-year estimated life, no residual value) 201 Accumulated depreciation-equipment 300 Accounts payable 301 Salaries payable 302 Income taxes payable (for 2019) 400 Common stock, par $1 401 Retained earnings 500 Sales 600 Cost of goods sold 601 Operating expenses 602 Income tax expense 700 Income summary Total 4,000 80,000 18,900 $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. 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. Journal Entries T-Accounts Unadjusted Trial Balance Adjusting Journal Entries T-Accounts after Adjusting Journal Entries Adjusted Trial Balance Financial Statements Closing Journal Entries T-Accounts After Closing Journal Entries Post-Closing Trial Balance b. Set up T-accounts as the general ledger for each of the accounts listed in the above trial balance and enter the December 31, 2019, balances. Post the journal entries from part a. Note: Enter amounts in the order that they are presented above (1 through 13), using the first available answer field on the appropriate side of the T-account. Not all answer fields will be used. Do not enter reference numbers. 101 Cash 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Accounts Receivable 102 104 105 Inventory 0 Allowance for Doubtful Accounts 0 0 Prepaid Insurance 0 0 0 103 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200 Equipment 0 0 0 0 0 0 0 0 300 302 Common Stock 400 Accounts Payable 0 Income Taxes Payable 0 Accumulated Depreciation- Equipment 0 0 0 0 201 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Retained Earnings 401 Sales 500 Cost of Goods Sold 600 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 601 Operating Expense 0 0 0 0 0 0 0 0 0 0 d. Prepare December 31, 2020, adjusting entries for the following additional information. 1. Increase Allowance for Doubtful Accounts by $200. (Hint: Debit Operating Expenses.) 2. Accrued income tax expense is $11,784. (Hint: Credit Income Taxes Payable.) 3. Accrued salaries were $300. 4. Use straight-line depreciation for equipment. 5. Adjust Prepaid Insurance for current year expense. General Journal Ref. Account Name Operating Expenses Dr. Cr. 1 0 0 0 0 N 0 0 Income Taxes Payable 0 0 3 0 0 0 0 4 0 0 Equipment Accumulated Depreciation Prepaid Insurance 0 0 5 0 0 0 0 Cash 101 102 104 Accounts Receivable 0 0 Allowance for Doubtful Accounts Inventory 0 0 0 103 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 105 Equipment 200 Prepaid Insurance 0 0 0 0 0 0 Accumulated Depreciation- Equipment 0 201 0 0 0 0 0 0 0 0 0 0 0 0 0 Accounts Payable 300 301 302 Common Stock 400 Salaries Payable 0 Income Taxes Payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 401 500 600 Retained Earnings 0 Sales 0 Cost of Goods Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 601 602 Operating Expense 0 Income Tax Expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 g. Prepare the income statement and balance sheet. $ Note: Record expenses in alphabetical order based upon the first letter of the account name. Note: Do not use negative signs with your answers. Wilson Corporation Income Statement For the Year Ended December 31, 2020 Revenues: Sales 200000 Total revenues 200000 Expenses: Costs of Goods Sold 130000 Operating Expenses Income Tax Expense Total expenses 93000 Net Income $ 0 Note: Record liability and stockholders' equity accounts in alphabetical order based upon the first letter of the account name. - Note: Do not use negative signs with your answers. $ 37000 $ 51000 18000 0 Wilson Corporation Balance Sheet December 31, 2020 Assets Cash Accounts Receivable Less: Allowance for doubtful accounts Inventory Prepaid Insurance Equipment Less: Accumulated depreciation Total Assets Liabilities Accounts Payable -1000 45000 900 50000 0 -22500 $ 141400 A 8500 51000 18000 0 VIRSUIT Pulau Balance Sheet December 31, 2020 Assets Cash Accounts Receivable Less: Allowance for doubtful accounts Inventory Prepaid Insurance Equipment Less: Accumulated depreciation Total Assets Liabilities Accounts Payable -1000 45000 900 50000 0 -22500 141400 > $ 8500 0 0 $ 8500 $ 81000 Total liabilities Stockholders' Equity Common Stock Retained Earnings Total stockholders' equity Total liabilities and stockholders' equity Please answer all parts of the question. 51900 132900 $ 141400 i. Post the closing entries to the ledger. Cash 101 0 0 Accounts Receivable 102 Allowance for Doubtful Accounts Inventory 104 0 0 103 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 105 200 0 0 Prepaid Insurance 0 Equipment 0 0 0 0 Accumulated Depreciation- Equipment 0 201 0 0 0 0 0 0 0 0 0 0 0 0 0 0 300 301 302 Common Stock 400 Accounts Payable 0 Salaries Payable 0 Income Taxes Payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 401 Sales 500 Cost of Goods Sold 600 Retained Earnings 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Operating Expense 601 602 Income Summary 700 Income Tax Expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0