The trial balances of Farro Company follow with the accounts arranged in alphabetic order:

Trial Balances

Unadjusted Adjusted Post-Closing

Accounts Payable.................................................. $10,000 $10,000 $10,000

Accounts Receivable............................................ 2,200 3,200 3,200

Accumulated Depreciationequipment.... 13,000 17,000 17,000

Advertising Expense............................................. 0 11,300 0

Cash.............................................................................. 60,000 60,000 60,000

Depreciation Expense.......................................... 0 4,000 0

Equipment................................................................ 75,000 75,000 75,000

Retained Earnings................................................. 82,200 82,200 102,400

Dividends.................................................................. 16,000 16,000 0

Prepaid Advertising.............................................. 12,800 1,500 1,500

Prepaid Rent............................................................ 15,000 11,000 11,000

Rent Expense........................................................... 0 4,000 0

Service Revenue..................................................... 96,000 105,000 0

Supplies...................................................................... 3,200 700 700

Supplies Expense................................................... 2,000 4,500 0

Unearned Revenue................................................ 23,000 15,000 15,000

Wages Expense....................................................... 38,000 45,000 0

Wages Payable........................................................ 0 7,000 7,000

Instructions

Analyze the data and prepare a) the adjusting entries and b) the closing entries made by Farro Company.