The trial balance of Huston Investment Advisers as at December $31,2012,$ follows:

Huston Investment Advisers

Trial Balance

December $31,2012$

Balance

Account

Debit

Credit

Cash

$$32,000$

Accounts Receivable

$46,000$

Supplies

$3,000$

Equipment

$25,000$

Accumulated depreciation

Accounts payable

$$11,000$

$15,000$

Salary payable

Unearned service revenue

$2,000$

Note payable, long$-$term

$39,000$

Huston, capital

$38,000$

Huston, drawing

$50,000$

Service revenue

$97,000$

Salary expense

$32,000$

Supplies expense

Depreciation expense

Interest expense

$3,000$

Rent expense

$9,000$

Insurance expense

$2,000$

Total

$$202,000$

$$202,000$ Adjustment data at December $31,2012$;

a$.$ Unearned service revenue earned during the year, $5500.$

b$.$ Supplies on hand, $$1,000.$

c$.$ Depreciation for the year, $$6,000.$

d$.$ Accrued salary expense $$1,000.$

e$.$ Accrued service revenue, $$4,000.$

Requirement:

$1.$ Prepare adjusting journal entries.

$2.$ Journalize the closing entries.

Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form.